Manufacturing Activity in Indonesia Deteriorates Further in the 3rd Quarter
After the ‘false start’ in the third quarter of 2019 when, in July, Indonesia’s manufacturing conditions contracted for the first time since January 2019, there is again some bad news to share. In August 2019 manufacturing conditions in Southeast Asia’s largest economy continued to contract, and even at a more rapid pace than last month.
The IHS Markit Indonesia Manufacturing Purchasing Managers’ Index (or PMI) fell from a reading of 49.6 in July 2019 to 49.0 in August (further below the 50 point threshold that separates expansion from contraction) as Indonesian manufacturing companies cut output in response to lower demand.
The chart below shows that we are now seeing a negative trend. Over the past four months manufacturing activity in Indonesia has fallen markedly.
Indonesia’s Manufacturing PMI:
Read the full article in the August 2019 edition of our monthly research report. You can purchase the report by sending an email to info@indonesia-investments.com or a WhatsApp message to the following number: +62(0)8788.410.6944
