Indonesia: Manufacturing PMI hits a new record-high in April
May 3, 2021
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit climbed to 54.6 in April from 53.2 in March, marking the strongest reading since the survey began back in April 2011. Therefore, the index moved further above the 50-threshold, signifying improving operating conditions compared to the previous month.
April’s rise came on the back of record-fast increases in output, new orders and purchasing activity. That said, employment levels were broadly stable, despite business confidence remaining remarkably high amid hopes of an end to the pandemic and upbeat demand conditions in recent months. On the price front, shortages of raw materials and delays in delivery again pushed input costs up strongly, which translated into another month of solidly rising selling prices.
Andrew Harker, economics director at IHS Markit, stated:
“Somewhat disappointingly given the strength of new order growth, firms still appeared reluctant to take on extra staff. Given the subsequent build-up of backlogged work, however, manufacturers will hopefully feel confident enough to start expanding workforce numbers in the months ahead."