Indonesia's factory activity expanded for the second straight month in September, survey figures from Markit Economics showed Monday.
The seasonally adjusted Nikkei Purchasing Managers' Index rose to 50.9 in September from 50.4 in August. Any reading above 50 indicates expansion in the sector.
Both new orders and production climbed in September, albeit at softer rates. New export orders grew at the sharpest pace in nearly four years.
Both employment and buying levels increased in September, amid reports of greater output requirements. However, the rate of job creation was only marginal.
On the price front, cost burdens increased in September, led by higher prices of raw materials and unfavorable exchange rates.
"The overall situation in manufacturing looks encouraging and although the observed growth in the sector remains on a relatively weak footing, the latest decision by the Bank of Indonesia to slash rates will likely boost the economy as we move into the coming quarter," Pollyanna De Lima, Economist at IHS Markit, said.
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