Indonesia: Manufacturing PMI at record-high in March
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit jumped to 53.2 in March from 50.9 in February, marking the strongest reading since the survey began in April 2011. Therefore, the index moved further above the 50-threshold, signifying improving operating conditions.
March’s increase came on the back of stronger increases in both output and new orders. Moreover, employment levels stabilized following 12 consecutive months of jobs shedding, while business confidence remained hit a 50-month high amid hopes of an end to the pandemic and higher sales. On the price front, shortages of raw materials and delays in delivery led input cost inflation to the fastest pace since October 2018, while the rise in output prices moderated from the previous month.
Andrew Harker, economics director at IHS Markit, stated:
“These positive results add to hopes that the sector is on a fast upward trajectory, with the obvious caveat that the COVID-19 pandemic could hit back at any time.”