Indonesia: Manufacturing PMI falls to fresh record low in March
April 1, 2015
The manufacturing Purchasing Managers’ Index (PMI) ticked down from 47.5 in February to 46.4 in March, according to a release provided by HSBC. March’s result marked the lowest level in the survey’s four-year history. Moreover, the index is now further below the 50-threshold, which indicates contraction in the manufacturing sector.
March’s figure reflected a sixth straight contraction in both output and new orders, with both falling at the fastest rate on record. Weak domestic and external demand dragged on production and new orders. Backlogs of work fell for a 10th straight month and employment levels fell at the fastest pace in survey history.
According to HSBC, “sharp reductions in domestic and export demand has led to a survey-record drop in manufacturing production during March. Employment also dipped at the fastest pace in four years of data collection, placing the sector in a more delicate position compared to the final quarter of 2014.”
Author: Carl Kelly, Economist