Indonesia's April PMI performance exceeds expectations as manufacturing activity continues to expand amid a slow global economy.
ndonesia's manufacturing sector continued to improve in April, according to S&P Global's purchasing managers' index (PMI), following strong domestic demand that led to a significant boost in production activities.
The PMI, which surveys purchasing executives from more than 400 manufacturing companies to determine the state of business conditions, increased by 0.8 points to 52.7 in April compared with the previous month.
It marked the 20th consecutive month of expansion for the country's manufacturing sector as it maintains above 50 level, which means companies produce more and buy more inputs.
"The manufacturing sector continued to gain momentum after a relatively subdued start in 2023. Improved business conditions reflected stronger domestic demand, which led to the fastest rise in new orders and production volumes for seven months," said Tim Moore, economics director at S&P Global Market Intelligence, in a statement on Tuesday.
Industry Minister Agus Gumiwang Kartasasmita said the recent data proved Indonesia's manufacturing sector was much better off amid contraction in many developed countries, which saw their PMI fall below 50.
Japan, for example, scored 49.5 in the manufacturing index, while South Korea, the United Kingdom, France and Germany posted 48.1, 46.6, 45.5 and 44, respectively.
"Business players and investors in Indonesia remain optimistic and confident in running their businesses," Agus said in a statement on Tuesday.
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