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View all search resultsFactory activity barely grows in December despite holidays, S&P finds
S&P Global's latest manufacturing PMI report showed the December reading slipped 2.1 points to 51.2 from the previous month, though it noted that surveyed firms anticipated a pickup in demand in the new year.
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A truck laden with fresh fruit bunches is parked on May 30, 2025, outside a palm oil processing factory in Meulaboh, Aceh. (AFP/Chaideer Mahyuddin)
T
he manufacturing sector concluded 2025 on a weaker note, despite the Christmas and New Year holidays, with export orders declining for a fourth consecutive month.
The manufacturing Purchasing Managers’ Index (PMI) report by S&P Global, released on Jan. 2, shows the index dipping to 51.2 points in December from a reading of 53.3 in the preceding month.
"Indonesia's manufacturing sector marked the end of 2025 with a sustained improvement in operating conditions, extending the current period of growth to five months,” Usamah Bhatti, an economist with S&P Global Market Intelligence, wrote in a comment published together with the report.
The report is based on a survey of purchasing managers from around 400 manufacturing companies nationwide. The PMI captures the sector’s performance, with values above 50 indicating rising factory activity and values below that threshold showing a contraction in production.
Over the past year, Indonesia’s manufacturing PMI reflected a sustained contraction in activity from April through July, and then conditions improved in August. The November reading was the strongest since February 2025.
However, the momentum halted again in December in spite of the year-end festivities, which typically lead to a seasonal peak in household spending.
