IHS Markit’s Manufacturing Purchasing Managers’ Index (PMI) for Indonesia, a gauge of the country’s manufacturing activities, climbed by almost eight points from 39.1 in June to 46.9 in July, the highest reading since February.

A value above 50 indicates an expansion against the previous month, while a reading below 50 indicates a contraction.

The country also recorded a slower drop in new orders and output amid the gradual reopening of the economy.

“PMI data showed another marked easing in the downturn across Indonesia’s manufacturing sector in July, adding to hopes that the worst impact of the COVID-19 pandemic was felt in the second quarter,” IHS Markit head economist Bernard Aw said in a statement on Monday. 

Earlier this year, the index recorded its worst decline in the survey’s nine-year history and the steepest drop recorded in Asia when it fell to 27.7 in April from 45.3 in March. Analysts said the government’s COVID-19 containment measures were the cause behind the downfall, as they forced factories to shut and caused unemployment to grow. 

The country has since taken steps to kickstart the economy. In June, the central government and local administrations were seen gradually easing large-scale social restrictions (PSBB).

Popular

Prabowo’s reshuffle bring ties with Jokowi back into focus

Public health measures urged amid El Niño's extreme heat

New police chief orders major shake-up