Indonesian manufacturing contracts in August, PMI at 15-month low: HSBC
JAKARTA (REUTERS) - Manufacturing activity contracted sharply in Indonesia in August and the workforce declined, according to HSBC Markit purchasing managers' index (PMI), which fell to a 15-month low.
Contraction in output, new orders and export orders pulled down the index for Southeast Asia's biggest economy to 48.5 from 50.7 in July. A survey reading above 50.0 signals expansion and a reading below that means contraction in manufacturing activity.
August saw "an overall deterioration in the Indonesian manufacturing sector," HSBC said.
"Weaker demand both domestically and externally appeared to be behind the worsening in manufacturing conditions," said Su Sian Lim, economist at HSBC.