Manufacturing Activity in Indonesia Ends Third Quarter on a Weak Note
Manufacturing activity in Indonesia has been in the red zone throughout the third quarter of 2019. In fact, the performance in Q3-2019 was Indonesia’s weakest performance in terms of manufacturing activity since the last quarter of 2016.
Although the IHS Markit Indonesia Manufacturing Purchasing Managers’ Index (or PMI) edged up from a reading of 49.0 in August 2019 to 49.1 in September 2019, it remained well below the 50.0 level that separates contraction from expansion in the manufacturing sector.
Overall demand conditions continued to weaken at the end of the third quarter of 2019 as inflows of total new orders declined for a second straight month (and at the same rate as in August, which had been the steepest since July 2017). Survey data indicated that both domestic and external demand remained weak. Backlogs of work were unchanged.
Read the full article in the September 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
