Indonesia: Manufacturing PMI eases in February
March 16, 2016
The manufacturing Purchasing Managers’ Index (PMI) edged down from 48.9 in January to 48.7 in February, according to a release provided by Nikkei. The index has been below the 50-threshold, which indicates contraction in the manufacturing sector, since October of 2014.
February’s deterioration came on the back of a renewed fall in employment and a notable drop in stocks of purchases. Output also decreased, however, at a more moderate rate than last month. Regarding prices, price pressures continued to build in February; however, inflation still remains below the long-run average.
According to Nikkei, ““PMI data for February indicate that Indonesian manufacturers continue to struggle. Production was lowered for the seventeenth month running amid weak domestic and external demand, while firms also shed jobs during the month. However, there are positive signs that the sector may turn the corner soon as highlighted by a moderation in the rate of contraction in output, which was the softest in the current downturn.”