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Mood improves among Indonesian manufacturers
An uptick in employment and a surge in confidence indicate growing optimism about business prospects.
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Workers assemble electric motorcycles on Sept. 21, 2023, at a factory of PT Terang Dunia Internusa in Citeureup, Bogor, West Java. (Antara/Arif Firmansyah)
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ndonesian manufacturers remain concerned about output and new orders but an uptick in employment for the first time in three months indicates cautious optimism for the future.
The latest manufacturing purchasing managers' index (PMI) report published by S&P Global on Tuesday rose slightly to 49.2 in September from 48.9 in August.
This marks the third consecutive month the index has remained below the 50-point threshold that separates expansion from contraction.
The monthly PMI report is based on a survey of purchasing executives from around 400 manufacturing companies across the country to gauge business conditions in the sector.
“The underwhelming performance of the Indonesian manufacturing economy was linked to a generally subdued global macroeconomic environment during September,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement accompanying the report’s publication.
“Still, firms increased their employment numbers as they looked toward brighter times ahead. Confidence in the outlook also improved in September to its highest level for seven months,” he added.
According to the S&P Global report, the manufacturing PMI last month was dragged down primarily by monthly reductions in both production and new orders.
