Indonesia: Manufacturing PMI dips amid rising Covid-19 infections
July 1, 2021
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit dipped to 53.5 in June from 55.3 in May, which had marked a record-high, as a new wave of Covid-19 infections weighed on activity. That said, the index remained above the 50-threshold, signifying improving operating conditions compared to the previous month.
June’s drop came on the back of slower increases of new orders and output, which had risen at the fastest rates in the ten-year survey history in May. Meanwhile, employment conditions remained broadly stable, with firms hiring new staff at a moderate pace. On the price front, protracted shortages of raw materials and longer delivery times translated into a further acceleration in both input and output inflation. Lastly, business sentiment remained in optimistic terrain.
Regarding the outlook, Jingyi Pan, economics associate director at IHS Markit, stated:
“Both production and sales growth remained at strong levels and it would be important to see the pandemic situation come under control soon so as not to further affect the performance of manufacturing firms.”