JAKARTA: Indonesian manufacturing activity contracted for the first time in a year in August, weakened by declining new orders and production, the HSBC Markit purchasing managers' index (PMI) survey showed on Monday.
The index was 49.5 in August, down from 52.7 the previous month and the lowest for Southeast Asia's largest economy since August 2013.
A reading below 50.0 signals a contraction in activity.
"The deterioration in manufacturing conditions in August is surprising," said Su Sian Lim, economist at HSBC.
"But the contraction in the PMI was only marginal this suggests that the softening in the August PMI may be a temporary lull, she said." New orders received by Indonesian manufacturers dropped on falling demand, ending a 10-month period of growth.
Comments
Comments are closed.