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Indonesia PMI August 2021

Indonesia: Manufacturing PMI rises but remains entrenched in contractionary terrain in August

The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 43.7 in August, up from July’s 40.1, which had marked the worst performance since June 2020. However, the index remained entrenched below the 50-threshold, signaling a deterioration in business conditions from the previous month.

August’s softer drop was due to milder falls in output, new orders and purchasing activity. Meanwhile, supply disruptions persisted, leading to rising delivery times. On the price front, input cost inflation accelerated to the highest rate since January 2014 amid increased raw material costs, which translated into a faster increase in output prices.

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