The Nikkei Indonesia Manufacturing PMI edged down to a 5-month low of 50.4 in November 2018 from 50.5 in October. Output continued to increase while new orders were largely stagnant and export sales declined for the twelfth straight month. At the same time, firms held back on input buying, which contributed to a fall in purchased inventories for the first time in five months.
Also, employment grew at a slower pace. On the price front, strong inflationary pressures remained a concern as companies grappled with rising input costs amid softer demand. The dollar strength, increased global commodity prices and weather-related supply shortages all contributed to inflation. That said, business confidence continued to be positive.