Indonesia: Manufacturing PMI rebounds from one-year low in August
September 4, 2017
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.7 in August, recovering from July’s one-year low of 48.6. As a result, the PMI now sits above the 50-point threshold, which indicates an overall improvement in business conditions.
According to the release provided by Nikkei and IHS Markit, the manufacturing sector benefited from renewed growth in orders which supported production in the month. New export business surged in August, recording one of the best results in the survey’s history. However, the inflow of new work failed to translate into new jobs and manufacturers continued to decrease staff. Regarding prices, inflationary pressures rose in August, in part due to shortages of raw materials.