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Indonesia’s Manufacturing PMI Saw 23-Month High in May

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Indonesia’s manufacturing PMI in May 2018

According to a report by Markit Economics, Indonesia’s (IDX) (ASEA) manufacturing activity improved at a solid rate in May as compared to the previous month. It stood at 51.7 in May as compared to 51.6 in April.

Indonesia’s manufacturing PMI in May was mainly affected by the following factors:

  • Production volume and output grew at a higher rate in May.
  • New orders also rose at a faster pace in May, which was the strongest improvement since July 2014.
  • The employment in the manufacturing sector also rose at a faster rate during the month.

Stronger improvement in domestic demand and overseas demand mainly boosted Indonesia’s manufacturing activity. Business sentiment in the economy also strengthened to a three-month high in May. The improvement in client demand in major emerging economies boosted the manufacturing activity in Indonesia.

Market impact

The VanEck Vectors Indonesia ETF (IDX), which tracks the performance of Indonesia, improved 1.7% in May. However, the Global X FTSE Southeast Asia ETF (ASEA), which tracks the performance of Southeast Asia, fell 6.4% in the same month.

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