Citing the latest report from financial research firm IHS Markit, a subsidiary of S&P Global, Indonesia’s purchasing managers’ index (PMI) contracted two-month straight to 50.3 points in November, the slowest in five months, and just slightly above the expansion threshold of 50.

Down 1.5 points from October, the latest figure is just 0.10 points higher than the lowest point this year in June, whereas in September, Indonesia’s PMI was at an eight-month high of 53.7 points.

The PMI is a survey of purchasing executives from around 400 different firms on whether business conditions have expanded, remained the same or contracted.

“November’s PMI data revealed growth slowing across the Indonesian manufacturing sector midway through the fourth quarter. A slower improvement in overall demand conditions, amid a notable fall in foreign sales, had been one of the main culprits underpinning the loss of growth momentum,” S&P Global Market Intelligence director Jingyi Pan said on Thursday.

The market intelligence firm assessed that demand for Indonesian manufactured products had skidded due to economic conditions and supply-side issues, in particular foreign sales that fell “at the quickest rate” in the last 15 months.

“Central to the slowdown in demand had been the persistent upturn in cost, although input price inflation slowed again in November, which provided some relief for manufacturers,” explained Pan. 

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