World Economy

Indonesia PMI Rises

Indonesia PMI RisesIndonesia PMI Rises

Manufacturing conditions in Indonesia improved in November after a disappointing start to the fourth quarter, indicating further steady economic growth as it heads towards the end of the year. However, the PMI survey also showed a further fall in employment, which could dampen hopes of a revival in household consumption, Seeking Alpha reported. The headline Nikkei Indonesia Manufacturing PMI rose from 50.1 in October to 50.4 in November, to indicate a slight improvement in the health of the sector. The latest reading is consistent with the Indonesian economy growing at an annual rate of around 5% in November, close to the pace of expansion seen over the previous few quarters. At an average of 50.3 so far in the fourth quarter, the reading is a slight improvement on the three months ending September. Nevertheless, the mild survey data suggest that economic growth is failing to pick up speed, and may remain subdued in coming months. While business optimism remained high, survey data showed that over 40% of firms expect unchanged output volumes over the next 12 months.

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