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RI manufacturing hits 13-month low amid new order, output slowdowns
Indonesia's PMI dropped in June to its lowest level in 13 months at 50.7, according to a S&P Global report, amid a weakened rupiah resulting in higher raw material prices.
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Workers produce noodles on Jan. 14, 2023 at a factory in Surabaya, East Java. (AFP/Juni Kriswanto)
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ndonesia saw its manufacturing purchasing managers’ index (PMI) drop to a 13-month low in June as companies recorded a slower growth rate for both new orders and output.
The PMI by S&P Global report published on Monday, based on a survey of purchasing executives from around 400 manufacturing companies to determine business conditions, showed that Indonesia’s PMI fell 1.4 points to 50.7 in June, the lowest since May 2023.
The June 2024 figure still marked expanding factory activity for the 34th consecutive month, as indicated by scores above the 50-point threshold separating expansion from contraction.
“There was a notable loss of momentum in the Indonesian manufacturing sector in June, with new order growth almost stalling as exports fell for the fourth month running,” Trevor Balchin, economics director at S&P Global Market Intelligence, said in a statement on Monday.
“The outlook is concerning, with the Future Output Index unmoved from May’s level and among the lowest on record,” he said.
Read also: Weaker rupiah, high oil prices hit RI manufacturing sector
According to the S&P Global report, production grew faster than new orders in June, causing backlogs to fall for the first time since last November. Stock of finished goods also fell for the first time since January, and at the steepest rate since July 2022.
