Indonesia: Manufacturing PMI ticks up in March
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) improved slightly to 51.3 in March from 51.2 in February. Thus, the index inched further above the 50-threshold, signaling a sustained improvement in business conditions from the previous month.
March’s reading came despite slowdowns in new orders and output, mainly associated with the fallout of the most recent Covid-19 wave. Moreover, elevated supply chain pressures resurfaced in March amid transport delays and shortage of key materials. That said, a rise in manufacturing production led to an increase in headcounts in order to support demand.
On the price front, input price inflation and output charges again rose notably in March, partially due to currency conversion fees and higher prices for raw materials. Lastly, sentiment regarding the coming months hit an eight-month high as Covid-19 infections subsided.
Commenting on the release, Jingyi Pan, economics associate director at S&P Global, stated:
“Companies reported that supply chains and price pressures have worsened, however, which were common themes around the region for the manufacturing sector in March, due to disruptions to the global supply chain and the impact of the Ukraine war. Prolonged strain on supply chains may hinder the recovery of the sector from the latest COVID-19 wave.”