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View all search resultsFactory activity improves in third quarter of 2020
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actory activity in Indonesia showed signs of improvement in the third quarter after recording the deepest slump ever in the previous quarter, as the reopening of the economy jacked up output and new orders, according to a Bank Indonesia (BI) survey.
BI’s Prompt Manufacturing Index (PMI-BI) was recorded at 44.91 percent in the third quarter, up from its lowest level ever at 28.55 percent in the second quarter. However, the figure remains below the pre-coronavirus pandemic level of 52.04 percent in the third quarter last year.
Index readings below 50 percent indicate a contraction, while those above 50 percent signify an expansion.
“Although manufacturing activity remains in a contractionary phase, the PMI-BI shows that the performance has improved,” the central bank said in the survey released on Wednesday.
“The implementation of [relaxed restrictions] has boosted demand and eased distribution.”
The central bank survey shows that all subindices, including overall output and new orders, rose for the first time since the fourth quarter last year.
The order volume subindex rose to 50.55 percent from 28.95 percent in the second quarter, followed by the production volume subindex that improved to 45.35 percent from 25.36 percent and the stock volume subindex that rose to 43.87 percent from 32.28 percent.
