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Indonesia factory PMI expands for seventh month in row
The manufacturing Purchasing Managers’ Index (PMI) stood at 51.3 in March, up from 51.2 in February.
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Workers exit a Beesco Indonesia factory in Karawang, West Java, on March 6, 2020. Manufacturers are more confident about increasing their workforces, according to the latest factory PMI in March 2022. (Antara/M Ibnu Chazar)
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ndonesia’s factory activity expanded for the seventh month in a row in March, although at a slower rate, as supply chain and price pressures weighed on manufacturing growth.
Business intelligence firm S&P Global wrote in a Friday statement that Indonesia’s manufacturing Purchasing Managers’ Index (PMI) stood at 51.3 in March, up from 51.2 in February. The 50-point mark separates growth from contraction.
Growth rates have been slowing down since an October 2021 peak of 57.2, according to the survey formerly called the IHS Markit PMI, before IHS Markit was acquired by S&P Global.
Read also: Manufacturing activity reaches record-high in October
“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,” said S&P Global economics associate director Jingyi Pan.
Most Asian countries saw factory activity slow in March, as slumping Chinese demand and rising raw material costs blamed on the Ukraine-Russia war added to lingering strains from supply chain disruptions.
China saw its factory activity fall to 48.1 in March, the steepest contraction since February 2020. Malaysia also posted a PMI contraction last month. South Korea, Taiwan and Vietnam saw their factory activities slow down.
