Indonesia's manufacturing sector contracted in June, with the Purchasing Managers' Index (PMI) falling to 46.9, according to CNBC Indonesia.

A reading below the 50.0 threshold indicates a decline in activity compared to the previous month, marking a further weakening in the country's industrial output.

The report highlights a broad-based slowdown in demand and rising cost pressures within the sector.

This deterioration in manufacturing performance suggests that domestic economic momentum is facing headwinds, potentially complicating the outlook for growth in the world's largest Southeast Asian economy.

This development aligns with a broader trend of decelerating private sector activity across major emerging and developed markets.

Recent data has shown contraction in the euro zone's private sector for a third consecutive month, while India's expansion slowed to its weakest pace in three months.