Indonesia: Manufacturing PMI records new record-high in May
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit rose to 55.3 in May from 54.6 in April, marking the strongest reading since the survey began back in May 2011. As such, the index moved further above the 50-threshold, signifying improving operating conditions compared to the previous month.
May’s rise came on the back of rising new orders and output, both of which rose at the fastest rates in the ten-year survey history. Moreover, employment rose for the first time in 14-months amid increasing capacity demands. On the price front, input prices continued to rise, albeit at a softer rate compared with the previous month, as supply constraints drove costs higher. Consequently, output costs also rose.
Regarding the outlook, Jingyi Pan, economics associate director at IHS Markit, stated:
“Overall, firms remain broadly positive with regards to future output with hopes of improving Covid-19 conditions. It will be important for the pandemic situation to stay under control, especially with outbreaks in the Asia region and post the Idul Fitri holidays, so as not to derail the ongoing recovery.”