Indonesia: Manufacturing PMI falls into contractionary territory in October
November 2, 2016
Indonesia’s manufacturing industry started off Q4 on a weak footing as the manufacturing Purchasing Managers’ Index (PMI) fell from 50.9 in September to 48.7 in October, according to a release provided by Nikkei and IHS Markit. The index now lies below the 50-threshold, which indicates a contraction in the manufacturing sector.
October’s fall came on the back of falling outputs, buying levels and employment. Incoming orders declined for the first time since July amid subdued demand and poor weather conditions. However, IHS Markit analysts commented that the PMI could rebound going forward, stating that, “In light of Bank Indonesia’s decision to ease monetary policy for a second straight month, manufacturing growth may be resumed as we approach the year end.”