Free Trial
US

FED Reverse Repo Operation

STIR

BLOCK, Jun'23 SOFR/Eurodlr Call Spd

EURGBP TECHS

Bullish Outlook

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

PMI Points To Solid Output Growth And Easing Inflationary Pressures

INDONESIA

The S&P Global manufacturing PMI for October remained in expansionary territory, unlike many other Asian countries, but expanded at a slower pace than in September. The October index was 51.8 versus 53.7 in September, a 2-month low.

  • The manufacturing PMI has been signalling growing output since August 2021.
  • While cost pressures remained in the manufacturing sector, due to higher commodity prices, they eased to a 22-month low. Selling price inflation also moderated to below its long-run average. This should be welcome news to Bank Indonesia.
  • Demand and output growth were both positive but moderated which also led to slower hiring and purchasing. However, business confidence improved significantly on better sales expectations.
  • Foreign demand for Indonesian products declined again, apparently due to weaker economic growth overseas.
  • There was a further lengthening of lead times reflecting continued supply constraints, including bad weather.
S&P Global Indonesia manufacturing PMI

Keep reading...Show less
146 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The S&P Global manufacturing PMI for October remained in expansionary territory, unlike many other Asian countries, but expanded at a slower pace than in September. The October index was 51.8 versus 53.7 in September, a 2-month low.

  • The manufacturing PMI has been signalling growing output since August 2021.
  • While cost pressures remained in the manufacturing sector, due to higher commodity prices, they eased to a 22-month low. Selling price inflation also moderated to below its long-run average. This should be welcome news to Bank Indonesia.
  • Demand and output growth were both positive but moderated which also led to slower hiring and purchasing. However, business confidence improved significantly on better sales expectations.
  • Foreign demand for Indonesian products declined again, apparently due to weaker economic growth overseas.
  • There was a further lengthening of lead times reflecting continued supply constraints, including bad weather.
S&P Global Indonesia manufacturing PMI

Keep reading...Show less