Although conditions remain challenging, there is some room for optimism as manufacturing activity in Indonesia reportedly climbed in the last month of 2018. In December 2018 the Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) rose to a reading of 51.2, up from 50.4 in the previous month (a reading over 50 indicates expansion in the nation’s manufacturing sector, while a reading below 50 points at contraction).
Accelerating manufacturing activity in December 2018 means that Indonesia ended the recent three-month streak of sliding growth (see table below).
This table also shows that, with the exception of January 2018, manufacturing activity has been growing throughout 2018. This is positive considering factory activity weakened across much of Asia last year as the US-China tariff war and a slowdown in demand hit production in many economies. There is some reason for optimism at the start of 2019 as Washington and Beijing are again in talks. US President Donald Trump even stated – just ahead of New Year - that “big progress” has been made after a call with his Chinese counterpart Xi Jinping.
Manufacturing PMI Indonesia:
This articles discusses:
• the factors that impacted on Indonesia's manufacturing activity in December 2018
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