Indonesia: Manufacturing PMI rises in March
Conditions in Indonesia’s manufacturing sector improved in March according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei, with the PMI increasing from 50.1 in February to 51.2. As a result, the indicator moved further above the 50-point threshold that seperates expansion from contraction in the manufacturing sector.
March’s reading was underpinned by higher new orders, output and employment. In response to higher output, purchasing activity reached a multi-year high, although on the downside new exports continued to decline. On the price front, input prices fell in March for the first time in the survey’s history, while output inflation softened. According to Bernard Aw, Principal Economist at IHS Markit, this came “amid reports of a stronger exchange rate and increased input supply.” Businesses were generally optimistic regarding output over the year ahead.