S&P Global Manufacturing PMI in Indonesia

Indonesia's Manufacturing PMI is a diffusion index compiled by S&P Global Market Intelligence from a monthly survey of purchasing managers in the country's manufacturing sector. A reading above 50 signals expansion from the previous month and below 50 signals contraction.

A weighted composite of five sub-indices: New Orders (30%), Output (25%), Employment (20%), Suppliers' Delivery Times (15%) and Stocks of Purchases (10%), using seasonally adjusted data. It is released on the first working day of the following month.

It is a leading indicator of the cycle: released before the national accounts and official industrial production, it is treated by markets as the first read on the pulse of Southeast Asia's largest economy. Weak prints can strengthen expectations of Bank Indonesia rate cuts and weigh on the rupiah.

It is a qualitative survey: it captures the direction of change, not its magnitude. The sample is of private companies and the seasonal adjustment factors are revised periodically, so the trend matters more than any single print.