Indonesia: Manufacturing PMI falls into contractionary territory in June
July 3, 2017
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) swung from May’s 50.6 to 49.5 in June. As a result, the PMI now sits below the 50-point threshold, which indicates an overall deterioration in business conditions.
According to the release provided by Nikkei and IHS Markit, stagnating orders caused output to fall, driving the downturn in the index. Jobs were shed for the ninth consecutive month, while purchasing costs rose in June. Despite these bad omens, firms maintained a positive view on future production, signaling firm confidence. Moreover, for the second quarter as a whole the PMI pointed to healthy expansion in the manufacturing sector.