Hanoi [Vietnam], November 2: Although Vietnamese manufacturing sector's business conditions continued to improve in October, there were signs of a slowdown amid weaker new order growth, according to a report released on Tuesday by S&P Global Market Intelligence.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index dropped to 50.6 in October from 52.5 in September, according to the report.
Although remaining above the 50.0 mark and thus signaling an overall strengthening of operating conditions during the month, the latest reading was the lowest in the current 13-month sequence of improvement, it said.
According to Andrew Harker, economics director at S&P Global Market Intelligence, the data showed first signs about the impacts of weakening global economy on Vietnamese manufacturers' growth as both new orders and exports increased at the weakest rates in 13 months.
"Worries around demand conditions also hit business confidence. That said, continued expansions in output and employment alongside muted price and supply pressures may help the sector remain in growth territory as the end of the year approaches," he said.
Central to the overall growth moderation in October was a softer increase in new orders. Total new business was up only slightly, and to the least extent since the current expansionary period began in October 2021, said the report.
A PMI reading above 50 indicates an expansion of the manufacturing sector, below 50 a contraction, while 50 indicates no change.
Source: Xinhua
