Manufacturing Activity Growth In Indonesia Eased In May

Indonesia: May’s reading for the Nikkei Indonesia Purchasing Managers’ Index (PMI) dropped to 50.6 in May from a reading of 51.2 in April. However, the reading remains comfortably above the line of 50.0 that separates expansion from contraction.

Last month’s manufacturing activity was the highest the country saw in 10 months. Pollyanna De Lima, economist at IHS Markit, said, "Although the Indonesian manufacturing economy hit a softer patch in May, some survey indices indicate that the slowdown is likely to be temporary. On the downside, we saw feeble expansions in new business and output relative to the recent highs noted in April.”

“More positively, firms purchased inputs at the strongest rate in nine months and mentioned that production growth was stymied by shortages of raw materials. While unable to scale up output as much as desired in May, the recent upswing in buying levels should prevent the same outcome in the near-term. Also noteworthy, there was a pick-up in the pace at which new orders from abroad increased,” Ms De Lima concluded.

APMEN News, June 2017

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