June 2023 Manufacturing PMI Rises, Indonesia Outperforms These Major Economies

Indonesia's Manufacturing Purchasing Managers' Index (PMI) reached 52.5 points in June 2023, up from 50.3 points in May 2023.

The Ministry of Industry (Kemenperin) also collected PMI scores from several countries. India (57.8 points) and Thailand (53.2 points) scored higher than Indonesia.

However, Indonesia's score surpassed several major economies, including China, which scored 50.5 points in the same period.

"China's PMI shows expansion although it is slowing down; new orders increased at a slower pace while employment fell for four consecutive months," wrote Kemenperin in a written report received by Databoks on Tuesday (1/8/2023).

(Read also: Domestic Orders Contribute to the Increase in Indonesia's Manufacturing PMI in June 2023)

Another major economy with a low score was the United States, with 46.3 points, a contraction from the previous month's 48.4 points. Kemenperin attributed this to "decreased new orders and output, affected by suppressed demand due to high inflation and interest rates."

In ASEAN, Indonesia outperformed Singapore (49.7); Malaysia (47.7); and Vietnam (46.3). Indonesia's PMI was also higher than the European Union's (43.4).

However, Kemenperin stated that the overall ASEAN PMI index showed expansion in both production and new orders.

The PMI indicates optimism among business players regarding future economic conditions. Investors and analysts often use the manufacturing PMI as a benchmark.

The PMI assessment parameters are as follows:

* 0 < PMI < 50: contraction or slowdown
* PMI = 50: stable
* 50 < PMI < 100: expansion or growth

(Read also: Indonesia's Manufacturing PMI Score Increases in April 2023, Outperforming the United States and China)