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Manufacturing PMI drops amid slowing new orders, output

According to the latest S&P Global report released on Monday, Indonesia’s manufacturing Purchasing Managers’ Index (PMI) dipped to a reading of 52.4 in March from 53.6 in February.

Aditya Hadi (The Jakarta Post)
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Wed, April 2, 2025 Published on Apr. 2, 2025 Published on 2025-04-02T14:34:06+07:00

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Manufacturing PMI drops amid slowing new orders, output A worker produces noodles on Jan. 14, 2023, at a factory in Surabaya, East Java. (AFP/Juni Kriswanto)

F

actory activity slowed last month after hitting its highest level in nearly a year in February, according a report published by S&P Global this week. While output and new orders continued to grow, the pace softened slightly compared to the previous month.

Indonesia’s manufacturing purchasing managers’ index (PMI), released by S&P Global on Monday, dipped to a reading of 52.4 in March from 53.6 in February. 

This marks the fourth consecutive month the index has read above the critical 50-point threshold separating expansion from contraction. 

Based on a survey of purchasing managers from around 400 manufacturers nationwide, the PMI report offers a snapshot of business conditions in the sector.

Indonesia’s manufacturing sector maintained strong momentum in March, with production growth recording its second-highest pace in five months, fueled by rising new orders. Some manufacturers attributed the demand boost to new client requests and improved marketing strategies. Meanwhile, foreign demand for locally manufactured goods returned to expansion territory for the third time in four months, the report said.

In response, companies expanded their workforce at the end of the first quarter, though job creation slowed to a three-month low and remained modest.

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