Indonesia: Manufacturing PMI reflects ongoing deterioration in sector July
August 4, 2015
The manufacturing Purchasing Managers’ Index (PMI) inched down from 47.8 in June to 47.3 in July, according to a release provided by Nikkei. The result continues to signal deteriorating conditions in the manufacturing sector. The index has been below the 50-threshold, which indicates contraction in the manufacturing sector, since September of last year.
July’s figure signaled the 10th straight contraction in both output and new orders. The fragile economic environment, deteriorating client confidence and weak global demand dragged on production and new orders. Lower production and new work requirements led manufacturers to reduce their purchasing activity in July. Moreover, employers trimmed their employment levels at the fastest pace in the survey’s four-year history.
According to Nikkei, “latest PMI data indicate that Indonesia’s manufacturing downturn extended into July.”
Author: Carl Kelly, Economist