Indonesia: Manufacturing PMI declines marginally in November
December 3, 2018
Conditions in Indonesia’s manufacturing sector improved at a slower pace in November, according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei, with the PMI decreasing from 50.5 in October to 50.4 in November—the third consecutive monthly decline. However, the reading was still above the 50-point threshold that seperates expansion from contraction in the manufacturing sector.
In November, production rose mildly, new orders were largely flat, and export orders continued to decline. Moreover, employment growth ebbed. Input price inflation was elevated on exchange-rate weakness and supply shortages, despite dipping from October’s multi-year high, while businesses were optimistic about output over the coming year.
According to Bernard Aw, Principal Economist at IHS Markit, “Indonesia’s manufacturing sector lost further momentum in the middle of the fourth quarter, according to the latest Nikkei PMI survey, setting the scene for its weakest quarterly performance this year.”
Author: Oliver Reynolds, Economist