By I Made Sentana

JAKARTA--Indonesia's manufacturing industry fell into contraction in October after three consecutive months of expansion, due to deteriorating orders from the domestic and offshore markets, a survey showed Tuesday.

The Nikkei Indonesia Manufacturing PMI dropped to 48.7 in October from 50.9 in September. A reading below 50 indicates a contraction.

"In light of Bank Indonesia's decision to ease monetary policy for a second straight month (in October), manufacturing growth may resume as we approach the year-end," said Pollyanna De Lima, economist at IHS Markit, which conducted the survey.

Write to I Made Sentana at i-made.sentana@wsj.com

(END) Dow Jones Newswires

October 31, 2016 21:32 ET (01:32 GMT)

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