Indonesia PMI November 2021

Indonesia

Indonesia: Manufacturing PMI declines in November

December 1, 2021

The IHS Markit Manufacturing Purchasing Managers' Index (PMI) dropped to 53.9 in November, from October's 57.2, which had marked the best result in series history. However, the index remained comfortably above the 50-threshold, signaling another improvement in business conditions from the previous month.

November’s reading was underpinned by softer albeit still-robust expansions in output and new orders. Moreover, employment levels increased, albeit slightly. On the price front, input cost inflation rose to an eight-year high amid increased raw material and transportation costs, which translated into a sustained increase in output prices.

Commenting on the release, Jingyi Pan, economics associate director at IHS Markit, stated:

“Supply constraints continued to affect this Southeast Asian country, […] with firms seeing longer lead times and price pressures remaining prevalent. That said, the rate at which suppliers’ delivery times lengthened did ease significantly in November, potentially reflecting early signs of improvement into the year-end.”

FocusEconomics Consensus Forecast panelists expect manufacturing output to rise 4.5% in 2022, which is unchanged from last month’s forecast. In 2023, manufacturing is seen growing 3.2%.


Author: Massimo Bassetti, Senior Economist

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