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Indonesia PMI September 2018

Indonesia: Manufacturing PMI dips in September

Conditions in Indonesia’s manufacturing sector improved at a slower pace in September, according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei, with the PMI decreasing from 51.9 in August to 50.7. However, the reading was still above the 50-point threshold that seperates expansion from contraction in the manufacturing sector.

September’s print reflected slower growth in output, new orders and employment. In addition, new export orders continued to contract. On the price front, the weaker rupiah caused input cost inflation to rise to a three-year high, with firms raising output prices as a result. Encouragingly, 12-month business expectations improved in September.

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