A renewed rise in new orders after a slight dip in August helped support overall business conditions in September, although the rate of expansion was marginal.

The report said international demand remained muted, but greater clarity on US tariff policy helped some firms win new foreign business.

With new orders rising, manufacturers increased production volumes at the end of the third quarter, extending the growth streak to five months. The expansion was solid but eased to its weakest since June.

Firms raised purchasing activity for a third consecutive month amid higher output requirements. Stocks of inputs continued to fall, while stocks of finished goods declined at the fastest pace since July 2024.

Inflationary pressures intensified at the end of the third quarter, with input costs and selling prices rising more quickly. The latest rise in input costs was the fastest since July 2024 and was linked by respondents to higher market prices and unfavourable exchange-rate movements. Selling prices rose at the fastest pace in 14 months.

Analysts said a more stable economic environment should help lift new orders and output over the coming year. Public sector investment is also expected to support growth. Although firms remained optimistic about the year-ahead outlook, sentiment slipped from August and stayed below the series average.

Andrew Harker, economics director at S&P Global Market Intelligence said, "There was good news on the demand front for Vietnamese manufacturers in September as new orders returned to growth and even exports, which have been falling continuously since late last year, showed signs of stabilising. The more certain picture regarding tariffs appears to have helped the demand environment for Vietnamese firms”.

"Greater stability is also expected to help support growth over the coming year, but confidence among firms remains relatively subdued at present given the recent muted demand picture”, he added.

"Something to watch out for in the months ahead is the picture around inflation. Rates of increase in firms' input costs and selling prices have been steadily strengthening in recent months. If this trend continues, we may start to see price pressures restricting demand", he noted.

PMI dips as export orders see steepest fall in more than two years

VOV.VN - Vietnam’s Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 48.9 in June from 49.8 in May, remaining below the 50.0 threshold for the third consecutive month and signaling a continued deterioration in manufacturing conditions as the first half of the year came to a close.