TOKYO -- Manufacturing activity in Indonesia failed to show growth for the first time in a year in January, pointing to signs of stagnation in the nation's economy, a survey showed Friday.
The Nikkei Indonesia Manufacturing Purchasing Managers' Index, or PMI, fell to 49.9 from December's 51.2. A reading above 50 indicates an expansion while a reading below 50 points to a contraction.
"The start of 2019 proved disappointing for the Indonesian manufacturing sector as growth was not seen for the first time in a year," said Bernard Aw, economist at IHS Markit, which compiles the survey.
"More worrying was the softening of demand conditions, particularly in the domestic market," Aw said.
Meanwhile, "the recent appreciation of the rupiah was instrumental in bringing down cost pressures. Input price inflation reached the lowest since the survey started nearly eight years ago," he added.
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