Indonesia: Manufacturing PMI rises in November but remains in contractionary territory
December 1, 2016
Indonesia’s manufacturing industry remains on a weak footing in Q4 as the manufacturing Purchasing Managers’ Index (PMI) lingered in contractionary territory in November. The PMI rose from 48.7 in October to 49.7, according to a release provided by Nikkei and IHS Markit. The index lies below the 50-threshold, which indicates a contraction in the manufacturing sector.
November’s subdued reading came on the back of weak demand conditions and floods disrupting production in the sector. New orders and output fell as orders from abroad recorded the largest drop since July. Despite the weak economic conditions, unemployment was broadly unchanged. Meanwhile, a weaker rupiah pushed up price pressures and cost inflation hit the highest level seen in three months.