Indonesia: Manufacturing PMI returns to expansionary territory in March
April 3, 2017
The Manufacturing Purchasing Managers’ Index rose from 49.3 in February to 50.5 in March, returning above the 50-point threshold which indicates expansion in the manufacturing sector. March’s reading was the best result in six months.
According to the release provided by Nikkei and IHS Markit, new orders and output rebounded in March, driving the index’s rise. However, the upturn in new business was not enough to translate into an improved labor market, and employment fell at the fastest pace since December 2015. Meanwhile, price pressures rose on the back of higher commodity prices and a stronger U.S. dollar and manufacturers’ confidence fell to a 32-month low in March.