Indonesia PMI September 2016


Indonesia: Manufacturing PMI rises in September

October 3, 2016

The manufacturing Purchasing Managers’ Index (PMI) rose from 50.4 in August to 50.9 in September, according to a release provided by Nikkei and IHS Markit. The index remains above the 50-threshold, which indicates an expansion in the manufacturing sector.

September’s increase came on the back of the fastest growth in new orders from abroad seen since November 2012. In addition, firms reduced backlogs of unfinished work and gains were seen in employment and buying levels. Meanwhile, inflationary pressures remained elevated, although they moderated slightly from last month, largely due to higher commodities prices and a weak exchange rate. IHS Markit analysts commented that, “the overall situation in manufacturing looks encouraging and although the observed growth in the sector remains on a relatively weak footing, the latest decision by the Bank of Indonesia to slash rates will likely boost the economy as we move into the coming quarter.”

FocusEconomics Consensus Forecast panelists see manufacturing rising 4.9% in 2016, which is up 0.5 percentage points from the previous month’s estimate. For 2017, the panel expects manufacturing to increase 5.0%.

Author: Angela Bouzanis, Senior Economist

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Indonesia PMI Chart

Indonesia PMI September 2016

Note: Nikkei Indonesia Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 indicate a contraction.
Source: Nikkei and IHS Markit.

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