Indonesia: Manufacturing PMI returns to positive territory in February
March 1, 2018
Conditions in Indonesia’s manufacturing sector improved at the start of 2018, according to Nikkei and IHS Markit. The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose from 49.9 in January, to 51.4 in February. As a result, the PMI moved above the 50-point threshold and indicates a slight deterioration in business conditions.
According to the release, production, new orders and employment expanded in February, bringing the PMI into expansionary territory. Moreover, the pace of job creation was robust, although new exports orders declined again. Regarding prices, firms’ cost burdens rose at a faster pace than in January on a weaker currency amid rising prices for raw materials. Consequently, output prices rose.
Indonesia Fixed Investment Forecast
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%