Indonesia: Manufacturing PMI falls into contractionary territory in February
March 1, 2017
After a short-lived improvement in January, Indonesia’s manufacturing industry returned to contractionary territory in February. The Manufacturing Purchasing Managers’ Index fell from 50.4 in January to 49.3, below the 50-point threshold which indicates contraction in the manufacturing sector.
According to the release provided by Nikkei and IHS Markit, new orders, output and employment each fell in February, driving the decline in the sector. Meanwhile, price pressures rose on the back of higher commodity prices and a stronger U.S. dollar. Manufacturers’ confidence fell to a 21-month low in February over concerns for the external sector environment.