Second Quarter 2020, Manufacturing Index Predicted to Remain Contracted

Economics & Macro

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Yosepha Pusparisa 14/04/2020 17:16 WIB

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Although there is a possibility of an increase, the rise remains below the threshold.

PMI-BI Manufacturing Sector Sub-sector Forecast, Second Quarter 2020

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Second Quarter 2020, Manufacturing Index Predicted to Remain Contracted

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PMI-BI Manufacturing Sector Sub-sector Forecast, Second Quarter 2020

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The COVID-19 pandemic caused Bank Indonesia's (BI) Prompt Manufacturing Index (PMI) to remain in contraction. Although it increased from 45.64% in Q1 2020 to 48.79% in Q2 2020, the index remained below the threshold. This contraction phase occurred due to decreased demand and supply disruptions caused by the pandemic.

The predicted increase in Q2 2020 indicates that several manufacturing industry sectors are beginning to expand. This is particularly true for the food, beverage, and tobacco industry (51.15%), paper and printing (51.12%), and cement and non-metallic mineral products (50.53%). BI predicts that the expanding sectors are supported by increased input order volumes and additional inventory volumes.

PMI is an indicator that describes the current situation of the manufacturing industry and its prediction for the following period. The PMI threshold is 50%; above this figure indicates sector expansion, while below 50% signifies sector contraction.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Second Quarter 2020, Manufacturing Index Predicted to Remain Contracted

Second Quarter 2020, Manufacturing Index Predicted to Remain Contracted

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Second Quarter 2020, Manufacturing Index Predicted to Remain Contracted

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