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Factory activity ticks back up, bodes well for fourth quarter GDP
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Mass rollout: Workers assemble electric motorcycles on Sept. 21, 2023 at PT Terang Dunia Internusa in Citeureup, Bogor, West Java. (Antara/Arif Firmansyah)
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ndonesia’s manufacturing purchasing managers’ index (PMI) rose marginally last month on the back of higher new orders and increased workforce numbers as confidence in future output improves, albeit at a slower pace than in the third quarter.
The PMI report published by S&P Global on Friday shows that the index inched up by 0.2 points to 51.7 in November from 51.5 in October.
The report is based on a survey of purchasing executives from around 400 manufacturing companies across Indonesia to determine business conditions.
"It will be worth watching for any further signs of deceleration, though manufacturers appear optimistic that conditions will improve in the months ahead,” wrote S&P Global economics associate director Jingyi Pan in a press statement accompanying the report.
However, Jingyi noted that the November reading was well below the average of 53.2 seen in the third quarter of this year, signaling a softening of manufacturing sector growth.
The slowdown signal notwithstanding, Indonesia’s PMI remains in expansive territory, marked by the 50-point threshold that separates expansion from contraction, for the 27th consecutive month
"More positively, output growth accelerated, supported in part by an improvement in employment numbers,” Jingyi said.
