Indonesia PMI December 2020

Indonesia

Indonesia: Manufacturing PMI picks up in December

January 4, 2021

The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit rose from 50.6 in November to 51.3 in December. As a result, the index moved further above the 50-threshold, signifying improving operating conditions.

December’s reading was driven by the second-highest rise in output on record and a faster expansion in new orders. Moreover, the decline in employment softened and was only marginal overall. On the price front, input cost inflation picked up, due to raw material shortages, leading to the strongest rise in output prices in 19 months.

Andrew Harker, economics director at IHS Markit, stated:

“Indonesian firms had a largely positive end to 2020, with latest PMI data showing second successive rises in output and new orders. There remains a long way to go given the severe disruption caused by the COVID-19 pandemic, but manufacturers are at least confident regarding prospects for 2021."

FocusEconomics Consensus Forecast panelists expect manufacturing output to rise 4.6% in 2021, which is down 0.7 percentage points from last month’s forecast. In 2022, manufacturing is seen growing 4.5%.


Author: Massimo Bassetti, Senior Economist

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