The IHS Markit Indonesia Manufacturing PMI rose to 51.9 in February 2020 from 49.3 in the previous month. The latest reading marked the first growth in factory activity since June last year, as new orders grew the most in over 5-1/2 years, mainly led by domestic demand. Also, output expanded for the third month in a row, rising at the steepest pace since May 2019; while employment rose for the first time in eight months, with backlogs of works dropping the least in five months. In addition, buying levels went up further.
On the price front, input price inflation accelerated to a nine-month high, amid steeper cost at mainland Chinese suppliers following a virus outbreak and local distributors, plus higher raw material prices. Meantime, output charges fell, amid greater competition and customer requests for discounts. Finally, sentiment remained strongly positive.
