Indonesia Manufacturing Output Contracts to 49.8 in August 2026

Indonesia's manufacturing activity re-entered contraction territory in August 2026 as the S&P Global PMI fell to 49.8 from 50.2 in July, driven by shrinking output and reduced employment amid tight competition and rising input prices. Indonesia was the only reported Southeast Asian nation below the 50-point expansion threshold, whereas the Philippines led the region with a surge to 54.9. S&P Global Market Intelligence noted a slight deterioration in sector conditions and weakening business confidence, though the Indonesian rupiah remained largely unaffected.