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Indonesia PMI January 2018

Indonesia: Manufacturing PMI rises in January

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 49.3 in December, a five-month low, to 49.9 in January. As a result, the PMI lies just below the 50-point threshold and indicates a slight deterioration in business conditions.

According to the release, new orders and employment fell slightly in January, holding the PMI in contractionary territory. However, the pace of job shedding was marginal, and output stabilized in January, helping push the PMI up from December’s low. Regarding prices, firms’ cost burdens rose amid rising prices for raw materials, however, charge inflation moderated.

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