Indonesia: Manufacturing PMI continues to signal worsening conditions in January
February 3, 2020
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit decreased from 49.5 in December to 49.3 in January. As a result, the index remained below the 50-threshold that signifies deteriorating operating conditions for the seventh straight month, amid a subdued external backdrop.
January’s decline came amid a drop in new orders, a faster fall in new export orders and lower employment. Price pressures were muted; although input prices rose slightly, output prices fell at a near survey-record rate amid competition and weak demand.
Bernard Aw, principal economist at IHS Markit, commented:
"Longer-term expectations meanwhile remained positive, with the Future Output Index, a gauge of confidence, rising to the highest for eight months. However, this optimism could quickly fade if client demand deteriorates further in the coming months."
Author: Oliver Reynolds, Economist