Vietnam’s manufacturing PMI falls in December 2022
VOV.VN - The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) dropped to 46.4 in December 2022 from 47.4 in November, indicating the continued deterioration of business conditions in manufacturing.
This is the second straight month of contraction in the manufacturing sector and the steepest pace since September 2021, according to S&P Global Market Intelligence that collects the survey results of the PMI.
In the last month of 2022, Vietnam’s manufacturing sector declined more sharply as demand both at home and abroad fell. In such context, companies reduced employment and purchasing activity, while business confidence remained low.
The number of new orders fell sharply in December due to weak demand in Vietnam’s some key export markets including China, the European Union and the United States.
At the same time, employment declined at a marked pace, and one that was the sharpest in 14 months. Meanwhile, suppliers' delivery times lengthened for the second month running, but only marginally.
On the price front, input cost inflation accelerated to the fastest in five months due to higher costs for raw materials, gas, and shipping. Meanwhile, selling prices fell for a second successive month as part of attempts to boost costumer demand. Finally, business sentiment remained muted amid concerns over weak demand conditions.
Some survey team members were concerned that market difficulties would persist into 2023, while some others expressed optimism that demand would recover that could help fuel new orders and output.