The Nikkei Manufacturing PMI in Indonesia increased to 49.9 in January of 2018 from 49.3 in the preceding month. Both output and buying activity were relatively stable while employment contracted the least since September 2017 and new orders declined for the second month in a row.
At the same time, new export orders dropped the most since March 2017, as appreciation of the rupiah relative to the US dollar may put further pressure on rejuvenating foreign demand. Meanwhile, input prices continued to rise sharply, but firms were restricted in their ability to fully pass on higher cost burdens to clients amid relatively subdued demand conditions.
