The Nikkei Indonesia Manufacturing PMI rose to 50.5 in July of 2018 from a five-month low of 50.3 in the previous month. Employment grew for the second straight month and new orders increased for the six month in a row. Also, buying activity continued to rise, though the rate of expansion remained modest.

However output fell for the first time in six months and new export orders shrank for the eight consecutive month. On the price front, firms faced a faster rise in input costs while output cost inflation remained modest as firms were unable to fully pass on higher cost burdens to price-sensitive customers. Finally, confidence remained positive and almost unchanged from June’s multi-year low.

BPS also recorded that manufacture industry, big and middle scale, grew 4.36% y/y in second quarter (Q2) this year, led by leather, goods from leather, and footwear (27.73% growth). Rubber, goods from rubber and plastic grew 17.28%. While beverage industry grew 15.4%. For cumulative, manufacture industry (big-middle scale), grew 4.86% y/y.