Indonesia PMI June 2016


Indonesia: Manufacturing PMI picks up in June

July 1, 2016

The manufacturing Purchasing Managers’ Index (PMI) rose from 50.6 in May to 51.9 in June, according to a release provided by Nikkei and Markit. The recent upswing in business sentiment seems to have picked up steam again after stalling in May—the index reached its highest point since July 2014 in June. The index is now further above the 50-threshold, which indicates an expansion in the manufacturing sector.

June’s increase came on the back of a steep rise in new business inflows on evidence of an improvement in domestic demand. Furthermore, manufacturing employment increased further. Meanwhile, input costs rose at the fastest pace of the year and new orders from abroad decreased. Markit commented that, “a survey-record rise in employment suggests that businesses expect the upturn in incoming new work to be sustained as we move into the second half of the year.”

FocusEconomics Consensus Forecast panelists see manufacturing rising 4.3% in 2016, which is down 0.3 percentage points from the previous month’s estimate. For 2017, the panel expects manufacturing to increase 4.8%.

Author:, Economist

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Indonesia PMI Chart

Indonesia PMI June 2016

Note: Nikkei Indonesia Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 indicate a contraction.
Source: Nikkei and Markit.

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