Indonesia: Manufacturing PMI returns to growth in September
October 1, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) jumped to 52.2 in September, from August's 43.7. Consequently, the index moved above the 50-threshold, signaling an improvement in business conditions from the previous month.
September’s reading was underpinned by expansions in output, new orders and purchasing activity. Meanwhile, supply disruptions persisted, leading to a further lengthening in delivery times. On the price front, input cost inflation remained elevated amid increased raw material costs, which translated into the fastest increase in output prices in close to three years.
Commenting on the release, Jingyi Pan, economics associate director at IHS Markit, stated:
“The effects of the improving Covid-19 situation and slight easing of restrictions were well captured by the data. That said, […] it will be important to see if better demand conditions translate to improved business confidence as the sector begins to recover.”