Indonesia's Manufacturing Sector Continues to Grow in February 2024

Indonesia's manufacturing sector continued to expand in February 2024, and at a pace that was little-changed from the start of the year.

IDXChannel - Indonesia's manufacturing sector continued to expand in February 2024, and at a pace that was little-changed from the start of the year, according to the latest Purchasing Manager's Index (PMI) data. 

The headline seasonally adjusted S&P Global Indonesia PMI fell to 52.7 in February, down from 52.9 in January. 

"February's PMI data revealed that operating conditions in the Indonesia manufacturing sector continued to improve since the start of the year," Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, said in a media release, Friday (1/3/2024).

The latest reading signalled a sustained improvement in manufacturing sector conditions, albeit at a slightly slower pace. This extended the current period of expansion to two-and-a-half years.

"Solid domestic demand supported growth in new orders and output, while foreign demand stagnated in February and will be worth watching in the months ahead for signs of firmer global conditions," Pan added.

Meanwhile, business sentiment across the Indonesian manufacturing sector remained positive in February, as firms stayed hopeful that production will rise in the next 12 months. 

The degree of optimism picked up from January, albeit remaining below the historical trend.

"Overall, sentiment among Indonesian manufacturers improved in February, which alongside other forwardlooking indicators such as new orders, suggest that we will continue to see output expanding in the near-term," Pan concluded. (WHY)