TOKYO – Production conditions in Indonesia fell in an unknown month in October and spread closer to the bend break, a survey showed Thursday.
Nikkei Indonesia Manufacturing Purchasing Managers Index, or PMI, fell from 50.7 in September to 50.5 in September. A reading of over 50 indicates that production is in an expansion, whereas less than 50 indicates a contraction.
The momentum of weakening came as both entry and exit price accelerated to three-year highs, driven by a weak rupiah.
"Indonesia's industrial sector lost further momentum in the beginning of the fourth quarter, reflecting signs of weaker demand conditions," said Bernard Aw, economist at IHS Markit, who collects the survey.
"The relatively weak exchange rate means that manufacturers can continue to meet higher cost pressures in the coming months due to higher prices for imported goods. "
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