Indonesia: Manufacturing PMI edges up to new record high
July 1, 2014
The manufacturing Purchasing Managers’ Index (PMI) edged up from 52.4 points in May to 52.7 points in June according to a release provided by HSBC. This is the highest result that has been recorded since the series began in April 2011. The index has been above the 50-point threshold that indicates expansion in the manufacturing sector for the past nine months.
June’s figure reflects that higher domestic orders caused the overall new orders category to hold steady at May’s record high, which also led companies to scale up their levels of production. Moreover, inventory stocks accumulated at the second-strongest pace on record. Meanwhile, the employment category returned to growth in June. These improvements are indicative of strengthening demand conditions in the economy.
Author: Carl Kelly, Economist