Indonesia: Manufacturing PMI moves back into positive territory in February
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit increased from 49.3 in January to 51.9 in February. As a result, the index moved above the 50-threshold that signifies improving operating conditions for the first time since June last year.
February’s increase came amid higher new orders, output and employment. However, new exports declined. Suppliers’ delivery times lengthened notably amid heavy rains and disruption in China due to the coronavirus outbreak, which also fed through to higher input price inflation.
Bernard Aw, principal economist at IHS Markit, commented:
“There were some concerns with regards to supply chains. Survey data showed the steepest deterioration of vendor performance for nearly three years […]. If this situation persists, firms may struggle to increase production volumes due to a lack of inputs.”