Indonesia's Manufacturing Output Continues to Expand in November 2023

Indonesia's manufacturing sector expansion was sustained midway into the fourth quarter of 2023.

IDXChannel - Indonesia's manufacturing sector expansion was sustained midway into the fourth quarter of 2023, according to the latest S&P Global Indonesia Manufacturing Purchasing Manager’s Index (PMI) data.

The headline seasonally adjusted S&P Global Indonesia Manufacturing PMI  rose to 51.7 in November, up from 51.5 in October, to signal a faster improvement in manufacturing sector conditions. 

This is also the twenty-seventh consecutive month in which the index has posted above the 50.0 no-change mark.

According to the report, production rose at a slightly faster pace, supported by higher new orders and increased workforce numbers. Manufacturers also raised their purchasing activity and input inventory holdings amid improved confidence with regards to future output. 

However, a marginal deterioration in vendor performance was observed. Inflationary pressures also intensified, despite remaining subdued by historical standards.

"November's PMI data indicated that Indonesia's manufacturing sector continued to expand, though the latest headline reading of 51.7 remained below the Q3 average of 53.2 to signal a slowdown in manufacturing sector growth into the final quarter of the year," Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, said in a media release, Friday (1/12/2023).

Furthermore, firms were generally optimistic that output over the coming 12 months would rise amid hopes of firmer market conditions and greater price stability. 

The overall level of business confidence lifted from October, but remained below the series average. (WHY)