The Nikkei Indonesia Manufacturing PMI rose to 51.6 in May 2019 from 50.4 in the previous month. It was the third straight month of growth in manufacturing activity and the highest PMI reading in nine months, as output expanded the most in a year, new order growth accelerated to a nine-month high and employment rose further.

At the same time, firms raised their purchasing activity and accumulated input stocks. Meantime, backlogs of work rose for the first time in five years, and at a pace not seen since February 2013. On the price front, input costs rose for the first time since February, and at the fastest rate in six months.

Meanwhile, output charges went up at a sharper rate. The depreciation in the rupiah and greater prices for raw materials were the main reasons for inflation. Lastly, sentiment hit its highest since February 2017, boosted by new product releases, higher sales forecasts ahead of long holidays and Eid al-Fitr celebration and anticipated post-election stability.