Indonesia's Manufacturing PMI Soars to 53.7, Highest Since January 2022

The domestic manufacturing industry is showing signs of recovery. This is indicated by the increase in Indonesia's Manufacturing Purchasing Managers' Index (PMI) in September 2022 to 53.7 from 51.7 in August. This is the highest level since January.

The latest figures also show 13 consecutive months of growth in factory activity, driven by the recovery of economic conditions after the pandemic disruption. Output has grown for four consecutive months and is at its fastest pace in eight months, and new order growth has reached a near one-year high.

Economist at S&P Global Market Intelligence, Laura Denman, said that the strengthening of Indonesia's manufacturing sector was driven by improved demand conditions, thus contributing to a significant increase in demand for almost a year.

“Recent survey data is consistent with the strengthening of Indonesia's manufacturing sector health since January. Improved demand conditions helped drive a sharp increase in demand for almost a year. This improvement in demand led to stronger production increases, employment, and purchasing activity during September,” said Laura.

On the price side, inflationary pressures continue to ease, marked by input price and output cost inflation rates falling to their lowest levels in 20 and 15 months respectively.