Wahyu Dwi Anggoro
IDXChannel - Indonesia’s manufacturing sector continued to expand in May 2024, underpinned by further gains in output and new orders.
The headline seasonally adjusted S&P Global Indonesia Manufacturing Purchasing Manager’s Index (PMI) signalled an improvement in operating conditions for a 33rd successive month in May.
The rate of growth was solid, although a fall in the PMI to 52.1, from 52.9 in April, pointed to the slowest rate of expansion since last November.
“May’s survey data showed another month of solid manufacturing sector performance, underpinned by concurrent gains in output and new orders. Market demand remains positive, though mainly led by domestic clients as global manufacturing softness continued to manifest itself through a subdued performance for new export orders," Paul Smith, Economics Director at S&P Global Market Intelligence, said in a media release on Monday (3/6/2024).
“Although growth remains in positive territory, there are signs of some darkening clouds on the horizon. Growth rates are generally lower, whilst confidence has slumped to its lowest level for over four years. Cost pressures also picked up. Perhaps understandably firms are subsequently taking a cautious approach to their workforce numbers by adopting a wait-and-see philosophy rather than presently replacing staff leavers," he added.
