The Nikkei Indonesia Manufacturing PMI dropped to 50.6 in June 2019 from a nine month-high of 51.6 in the previous month. Both output and new orders expanded at softer rates while employment grew the least so far this year.

Also, buying levels softened, resulting in a weaker rate of accumulation in input inventories. Holdings of finished products rose further amid reports of an increase in unsold goods. In terms of prices, inflationary pressures eased. Cost increases rose at a slower rate, and firms also raised selling prices at a softer pace.

Finally, sentiment was maintained, with the Future Output Index remained among the highest levels seen for 2-1/2 years, supported by planned business expansions, increased production capacity, promotional activity and greater client demand.