Business confidence falls, PMI falls below 50

S&P Global has just announced that the Purchasing Managers' Index (PMI) of the Vietnamese manufacturing industry in April fell below the 50-point threshold. The PMI index result for April 2025 reached 45.6 points (March 2025 reached 50.5 points), showing that the health of the Vietnamese manufacturing industry has clearly weakened compared to the previous month. In fact, business conditions have deteriorated to the largest extent since May 2023.

“The imposition of US tariffs pushed the Vietnamese manufacturing sector into contraction in April, with firms reporting significant declines in new orders, exports and output,” said Andrew Harker, chief economist at S&P Global Market Intelligence. “Furthermore, the prospect of further disruptions to manufacturing due to additional tariffs has caused business confidence to fall to one of its lowest levels on record. In an uncertain environment, it will be important to monitor the S&P Global Vietnam Manufacturing PMI data in the coming months to see how business conditions evolve.”

Output, new orders, employment and purchasing activity all fell sharply in the month of August, S&P Global reported. Business confidence fell the most in 44 months (since August 2021) due to tariff concerns. Weak demand prompted companies to continue to cut prices, while input costs rose slightly.

G. PROTECTION

Source: https://baocantho.com.vn/niem-tin-kinh-doanh-giam-chi-so-pmi-giam-xuong-duoi-nguong-50-diem-a186183.html