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Financial News: Indonesia Manufacturing Sector Falls Into Contraction - S&

Indonesia Manufacturing Sector Falls Into Contraction - S&P Global

08/31/2026 - 20:49:00 (RTTNews)

(RTTNews) - The manufacturing sector in Indonesia dropped into contraction territory in August, , the latest survey from S&P Global revealed on Tuesday with a manufacturing PMI score of 49.8.

That's down from 50.2 in July, and it falls beneath the boom-or-bust line of 50 that separates expansion from contraction.

The marginal deterioration seen in August was mainly driven by renewed, though modest falls in output and employment. Indonesian manufacturing production and employment have now decreased in five of the past six survey periods.

The latest drop in output was linked to stronger competition, subdued demand conditions and higher goods prices. In line with the renewed fall in production, some firms reduced their payroll numbers. Others reported difficulties maintaining staffing levels amid voluntary resignations.

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Indonesia Manufacturing Sector Falls Into Contraction - S&P Global

08/31/2026 - 20:49 PM (RTTNews)
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