Indonesia's Manufacturing Stalls as Middle East War Hits Demand, Supply, S&P Global Says

MT Newswires Live04-01

Indonesia's manufacturing activity stalled in March as the war in the Middle East disrupted demand and supply, driving up costs and weighing on production, according to data released Wednesday by S&P Global.

The seasonally adjusted Indonesia Manufacturing Purchasing Managers' Index fell to 50.1 in March from 53.8 in February, signalling near-stagnation in operating conditions.

Output contracted for the first time in five months, while new orders declined after eight months of growth. Export demand also weakened.

Firms cited raw material shortages and higher input costs linked to the war in the Middle East as key factors weighing on production and demand.

Backlogs of work fell, while employment and purchasing activity declined amid softer demand.

Despite the slowdown, business confidence improved slightly, though it remained below the long-run average.

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