S&P Global’s Vietnam Purchasing Managers’ Index recorded 54.7 points in July which was the same as in June. S&P Global says this was on the back of a ‘substantial rise’ in new orders. It does, however, note that to fulfil these orders firms relied largely on finished goods already on hand as opposed to importing more raw materials. For context, Vietnam’s trade surplus in July was US$2.12 billion, according to the General Office of Statistics.
Key takeaways
- There were improvements in consumer, intermediate and investment goods;
- Purchase stocks decreased for the eleventh month in a row;
- High inflation and increased shipping costs saw input costs rise sharply; and
- Selling prices increased for the third month in a row.
Note that, the index is out of 100 with 50 being break-even and anything below that signalling a contraction with anything above signalling an expansion.