Indonesia: Manufacturing PMI signals record-high growth in October amid a further easing of Covid-19 restrictions
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) jumped to 57.2 in October, from September’s 52.2, logging the best result in series history. Consequently, the index moved above the 50-threshold, signaling the sharpest improvement in business conditions from the previous month in the survey’s history.
October’s reading was underpinned by unprecedented expansions in output and new orders. Moreover, employment levels increased for the first time in four months. Meanwhile, supply disruptions persisted, leading to a further lengthening in delivery times. On the price front, input cost inflation rose to an eight-year high amid increased raw material costs, which translated into a fast increase in output prices.
Commenting on the release, Jingyi Pan, economics associate director at IHS Markit, stated:
“Supply constraints persisted, [and] while this is not unique to Indonesia, it will be worth watching whether supply issues will dampen the economic recovery in the months ahead.”