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Why Indonesia’s Manufacturing PMI Rose in April

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May. 24 2018, Published 1:39 p.m. ET

Indonesia’s manufacturing PMI in April

According to a report by Markit Economics, Indonesia’s (IDX) (ASEA) manufacturing activity improved more in April than in March. It was 51.6 in April compared to 50.7 in March.

Indonesia’s manufacturing PMI in April was mainly due to the following factors:

  • Production volume and output grew at a faster rate in April. It was the most improvement since July 2014.
  • New orders rose at a faster rate in April. It was the strongest improvement since June 2016.
  • Employment in the manufacturing sector improved in April.

Indonesia has been playing a major role in the Asian economy. Structural reforms and a change in demographics are supporting the Asian growth story. Recent trade talks between the United States and China have reduced the fear of a global trade war, which has helped the overall global economy.

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Market impact

The VanEck Vectors Indonesia ETF (IDX), which tracks the performance of Indonesia, fell 5.6% in April. However, the Global X FTSE Southeast Asia ETF (ASEA), which tracks the performance of Southeast Asia, rose 0.85%.

In the next part of this series, we’ll take a look at the indicators investors should watch this week.

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