Indonesia: Growth in the manufacturing sector eases in March
Conditions in Indonesia’s manufacturing sector remained expansionary but deteriorated in March, according to Nikkei and IHS Markit. The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) dropped from 51.4 in February to 50.7 in March. As a result, the PMI remained slightly above the 50-point threshold and indicates a slight improvement in business conditions.
According to the release, production, new orders and employment expanded at softer rates than in March, and business confidence fell notably. Moreover, firms continued to create new jobs, but at a slower pace than in February, and new exports orders declined again. Regarding prices, firms’ cost burdens rose at the fastest clip since October 2015 on a weaker currency. Companies reacted by raising output prices, although to a much lesser extent, which translated into lower profit margins.