Indonesia's manufacturing activity registered a moderate growth in February, Markit Economics said Friday. Output of manufacturing firms stagnated as exports remain weak.
The seasonally adjusted headline Purchasing Mangers' Index rose to 50.5 in February from 49.7 in January, indicating an improvement in the health of the manufacturing sector, albeit only slight.
The manufacturing firms reported no-change in output, while some companies were unable to fully meet demand due to a delayed delivery of raw materials.
The volume of incoming new work at manufacturing companies increased in February, reflecting strong domestic demand. In contrast, new export orders fell, the first contraction registered since September 2012.
Staffing levels declined in February as the non-replacement of staff resignations and the rise in the minimum wage fed through to the decrease in payroll numbers.
Input price inflation persisted in February, amid reports of higher plastic, oil, electricity and labor costs. Consequently, charges were increased again.
Elsewhere, the statistical office showed that exports dropped 1.2 percent in January from a year ago, while imports grew 6.8 percent. The trade balance, as a result, showed a larger deficit of $0.17 billion in January.
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