Indonesia: Manufacturing PMI eases in October
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 51.5 in October from September’s 52.3. October’s result was the weakest since May. Despite the downtick, the index remained above the 50.0 no-change mark for the 26t h consecutive month, pointing to a moderating improvement in manufacturing sector operating conditions from the previous month.
The start of the fourth quarter saw a subdued increase in production driven by a slowdown in new orders growth and a reduction in export sales. Moreover, as capacity pressures eased, so did employment, which fell for the first time since June 2022. That said, inventories increased due to a continued rise in purchasing activity.
Meanwhile, input expenses rose due to increased raw material, transportation and finance costs. Even so, input price inflation was below the series average. Finally, firms’ optimism regarding output expectations for the year ahead slipped to an eight-month low due to heightened uncertainty regarding global economic conditions.