Indonesia: Manufacturing PMI ticks up marginally in February
Conditions in Indonesia’s manufacturing sector largely stagnated in February according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei, with the PMI increasing from 49.9 in January to 50.1 in February. As a result, the indicator moved marginally above the 50-point threshold that seperates expansion from contraction in the manufacturing sector.
February’s reading was underpinned by a stabilization in new orders and higher employment. However, new exports and output declined. On the price front, input and output inflation were weak, supported by the marked appreciation of the rupiah since the back end of 2018. Businesses were generally optimistic regarding output over the year ahead.