The S&P Global Vietnam Manufacturing Purchasing Managers' Index, released on August 1, posted 48.7 in July, up from 46.2 in June. The fact that the Index is still below the benchmark of 50 points reflects that although Vietnam's manufacturing industry has recovered slightly, operating conditions are still deteriorating. Business confidence picked up to a four-month high in July, but remained relatively muted. Firms hope that an eventual recovery in customer demand will feed through to renewed production growth, but remain concerned by the current challenges in securing new business. Despite the latest drop in production, firms were still left with unsold stock. Meanwhile, prices continue to fall and supplier delivery time is shortened as production capacity in the industry is not fully utilised./.