Indonesia PMI December 2017

Indonesia

Indonesia: Manufacturing PMI plummets in December

January 2, 2018

Conditions in Indonesia’s manufacturing sector weakened in December, according to Nikkei and IHS Markit. The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell from 50.4 in November to 49.3 in December, a five-month low. As a result, the PMI swung below the 50-point threshold, which indicates an overall deterioration in business conditions.

According to the release, output and new orders contracted in December, driving the PMI´s downturn. As a result, firms shed jobs and reduced inventory holdings. Regarding prices, input cost inflation rose and manufacturers reported higher cost burdens to a weak exchange rate. On a bright note, business confidence rose to the highest level since June in December.

FocusEconomics Consensus Forecast panelists see fixed investment rising 6.3% in 2018, which is unchanged from last month’s estimate. For 2019, the panel expects fixed investment to increase 6.5%


Author: Angela Bouzanis, Lead Economist

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Indonesia PMI December 2017

Note: Nikkei Indonesia Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 indicate a contraction.
Source: Nikkei and IHS Markit.


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