Business · Economy · 3 hrs ago

Indonesia’s factory activity strengthens as GDP figures approach

Indonesia’s factory activity strengthens as GDP figures approach

Indonesia’s manufacturing activity strengthened ahead of the release of third-quarter growth figures.

Its factory purchasing managers’ index rose to 54.0 in October from 52.4 in September; readings above 50 indicate expansion.

That was the strongest factory expansion in more than two years, driven by rising new orders, including record growth in export orders since the survey began in 2011.

The country also recorded a US$3.36 billion trade surplus in September, its third monthly surplus in a row, as exports rose.

Inflation was 3.23% in October, within the government’s target range, although food prices rose faster as dry conditions affected some crops.

The government says it will strengthen steps to protect food production and distribution ahead of the Christmas and New Year period.

The figures point to stronger industry and trade alongside contained overall inflation as Indonesia prepares to publish its third-quarter economic growth data.

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via CNBC Indonesia