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Manufacturing closes 2022 on high note, opens 2023 upbeat
The manufacturing industry has entered the new year with optimism owing to high domestic demand over the year-end holiday and annual core inflation that remained well within the central bank's cap of 3.50 percent.
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The facilities of Chandra Asri Petrochemical, Indonesia’s largest publicly listed petrochemical company, in Cilegon, Banten, are seen in this undated file photograph.
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igher domestic demand spurred a December rebound for Indonesian factories as core inflation rises to within the central bank’s target, indicating an optimistic start to 2023 for the manufacturing industry.
According to S&P Global subsidiary and financial research firm IHS Markit, the manufacturing purchasing managers’ index (PMI) in December 2022 was up 0.6 points from the month before to 50.9, ending two months of corrections.
The data also shows that the manufacturing sector has been in the expansion zone in 2022 overall, peaking in September with 53.7 points to continue a 16-month streak.
The PMI surveys purchasing executives from around 400 manufacturing companies to determine whether business conditions have improved, stagnated or declined.
“December’s PMI data pointed to improved conditions in Indonesia’s manufacturing sector at the end of 2022,” S&P Global Market Intelligence director Jingyi Pan said in a statement on Monday.
The survey respondents said that price pressures had eased, reducing input cost inflation below the average level in the final month of 2022 to mark a 19-month low in selling price inflation that led to a flurry of orders.
