Indonesia: Manufacturing PMI slides in November as sector's woes continue
December 3, 2015
The manufacturing Purchasing Managers’ Index (PMI) inched down from 47.8 in October to 46.9 in November, according to a release provided by Nikkei. The index has been below the 50-threshold, which indicates contraction in the manufacturing sector, since September of last year. November’s result is the lowest since April and signals continued weakness in the manufacturing sector.
November’s figure was driven by ongoing declines in both output and new orders amid weak domestic and global demand. Production decreased at the fastest rate in seven months and new orders continued on the losing trend that started in October of last year. Lower production and new work requirements led manufacturers to reduce their input purchasing activity at a record pace and cut staffing levels for the 16th straight month.
According to Nikkei, “Indonesia’s manufacturing downturn intensified during November. Falling demand from both external and domestic clients led to the third-sharpest drop in output since data were first available in April 2011. Subsequently, firms scaled back their quantities of purchases and trimmed workforces further.”
Author: Carl Kelly, Economist