TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Manufacturing recovery continues, albeit more slowly
The manufacturing PMI stayed in positive territory in November, despite declining from the all-time high recorded in October.
Change Size
A worker transports products at a Goodyear Indonesia factory, in this undated photo. (File/goodyear-indonesia.com)
T
he domestic manufacturing industry continued to recover in November as the declining trend in COVID-19 infections allowed for higher economic activity, albeit at a slower pace than the preceding month.
The manufacturing purchasing managers’ index (PMI), a monthly indicator released by business information provider IHS Markit that reflects the health of the manufacturing industry, declined to 53.9 in November from an all-time high of 57.2 in October.
Indonesia has maintained a PMI of above 50 since September, revealing that manufacturing activities had increased after a spike in virus cases prompted the government to impose widespread restrictions on business and leisure activities in July.
“The growth momentum in Indonesia’s manufacturing sector in November declined from October’s record-breaking growth, but the PMI stood strong, showing continued recovery from [the] COVID-19 Delta wave,” IHS Markit economics associate director Jingyi Pan said in a press release on Monday.
Read also: Manufacturing activity reaches record-high in October
Respondents to IHS Markit’s latest survey said they had experienced stronger demand that resulted in higher production and sales. Consequently, companies had also expanded their workforce, though marginally.
“Companies are also continuing to expand their workforce capacity and increase purchasing activities amid expectations of a rise in future output, which is a positive sign,” Pan added.
