The IHS Markit Indonesia Manufacturing PMI dropped to 49.0 in August 2019 from 49.6 in the previous month. The latest reading pointed to the steepest contraction in the manufacturing sector since July 2017, with output falling the most in nearly three years. In addition, new orders declined for the first time in four months, and at the fastest rate in over two years, led by a marked decline in export sales. At the same time, backlogs of work and employment shrank further. Staff numbers were reduced at the fastest rate for 20 months. Also, buying activity was scaled back while stocks of finished goods increased amid reports of unsold products. In terms of prices, input costs rose at the weakest pace in the current four-month sequence of inflation. As a result, firms raised their output charges marginally. Lastly, sentiment remained buoyant, though dipped to a four-month low.