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Indonesia PMI August 2018

Indonesia: Manufacturing PMI rises in August

Conditions in Indonesia’s manufacturing sector improved in August, according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei. The PMI increased from 50.5 in July to 51.9 in August, marking the joint-highest reading since July 2014 and moving further above the 50-point threshold that seperates expansion from contraction in the manufacturing sector.

August’s print reflected faster growth in new orders and employment, and a rebound in production. In particular, employment rose at a survey-record-high pace. On the price front, input price inflation was the fastest in nearly three years, driven by the weaker currency, with a consequent large rise in output prices. Positively, the 12-month production outlook among firms strengthened in August.

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