TOKYO -- The Nikkei Indonesia Manufacturing Purchasing Managers' Index, or PMI, rose to 50.4 in January from 49.0 in December.
A reading above 50 indicates economic expansion, while one below 50 points toward contraction. January's PMI shows the first improvement in the country's business conditions in four months.
"PMI data showed that the upturn was domestically driven as new export orders dipped again," Pollyanna De Lima, economist at IHS Markit said.
"Looking ahead, the trend for trade will remain challenging given so much uncertainty surrounding the global economy. On the other hand, recent moves by Bank Indonesia to lower interest rates are likely to fuel consumer spending."
According to the survey, 82% of participants expected higher output in the year ahead. New product launches, business expansion plans and better marketing campaigns were among the reasons boosting optimism.
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