Manufacturing activity index ( PMI ) of HSBC in Indonesia fell to the lowest in seven months in March . Recent data underscore the decline in domestic manufacturing production .
PMI edged down to 50.1 in March from 50.5 in February , according to HSBC economist Su Sian Lim on Tuesday . Latest PMI numbers marked decline in two consecutive months for Indonesia .
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"This implies that domestic demand for goods continued to decline and persist at a moderate pace , following a macro-prudential and monetary tightening aggressively since mid-2013 , " said Lim . " At the same time , external demand is also only slightly increased , as reflected in the value of new export orders were slightly creeping up . "
A PMI reading below 50 indicates a contraction in manufacturing activity . A PMI reading above 50 indicates expansion .
Bank Indonesia in March cut its growth forecast to between 5.5 % and 5.9 % this year . Decreased from the previous prediction of 5.8 % and 6.2 % . Indonesia 's economy grew 5.8 % last year, the slowest pace since 2009 .
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