Indonesia: Manufacturing PMI reaches record high in May
June 2, 2014
The manufacturing Purchasing Managers’ Index (PMI) increased from 51.1 points in April to 52.4 points in May according to a released provided by HSBC. The new PMI reading represents the highest result in the history of the series. The index has been above the 50-point threshold that indicates expansion in the manufacturing sector for the past nine months.
May’s figure reflected that the new orders category, including both foreign and domestic orders, rose to a record high and also led to a notably high level of production. Moreover, stocks of purchased goods increased at the fastest pace in a year and a half. These improvements are indicative of strengthening demand conditions in the economy. Meanwhile, the employment category registered a modest decline.
Author: Carl Kelly, Economist