Indonesia Manufacturing PMI2021 Data | 2022 Forecast | 2012-2020 Historical

The IHS Markit Indonesia Manufacturing PMI jumped to 52.2 in September 2021 from 43.7 a month earlier. The latest reading represented a return to expansion for the sector after two straight months of falls, on the back of an easing of COVID-19 restrictions across some regions of the country. Both output and new orders grew after two months of steep declines, amid a renewed increase in buying levels. Meantime, foreign demand remained weak due to shipping difficulties, while employment remained dampened by coronavirus disruptions. Backlogged work accumulated for the 7th straight month, however, and at a rapid pace. Price pressures persisted, with input cost inflation remaining rapid due to rising raw material costs while output price inflation hitting its highest in almost three years. Looking ahead, sentiment dipped slightly since August and was lower than the survey average.

The IHS Markit Indonesia Manufacturing PMI rose to 43.7 in August 2021 from a 13-month low of 40.1 in July. pointing to the second straight month of contraction in factory activity, amid signs that the second COVID-19 wave has peaked following an acceleration in COVID-19 vaccinations, with the declines in production and demand easing from the severe rates seen in July. However, firms remained cautious with their purchases; while employment conditions worsened, which contributed to the sharpest accumulation of backlogged work on the record. Delivery delays persisted, as evident through the lengthening of lead times for the nineteenth straight month. On prices, input cost inflation hit its highest since January 2014, and output charges rose faster. Looking ahead, sentiment weakened, despite the reading remained above the survey’s average amid hopes that the pandemic situation will improve.

The IHS Markit Indonesia Manufacturing PMI plunged to 40.1 in July 2021 from 53.5 in June. This was the first contraction in factory activity in nine months and the steepest pace since June 2020, amid greater restrictions around mobility following the second wave of COVID-19. Both output and new orders shrank at the fastest pace since May 2020, while export orders fell for the first time in four months and at a rate quicker than the drop in new work. Also, manufacturers switched to lowering their employment and reduced their buying level and stocks of inputs. Meantime, supply constraints persisted, with suppliers’ delivery times worsening at the steepest rate since May 2020, while the level of backlogged work remained almost unchanged. On prices, input cost inflation hit its highest since February 2014, leading firms to continue to partially pass on higher cost burdens to clients. Looking ahead, confidence strengthened, amid hopes that the coronavirus situation would improve.

The IHS Markit Indonesia Manufacturing PMI fell to 53.5 in June 2021 from a record peak of 55.3 in May, amid a renewed rise in local COVID-19 cases. An expansion of output was recorded for an eighth straight month but growth moderated from the record rate in May. This was in line with a softer increase in new orders, while growth in export work eased to a three-month low. At the same time, buying levels eased, despite a stronger depletion of raw materials and semi-finished items. Meanwhile, supplier performance deteriorated at the fastest rate since January. Employment was relatively stable amid a continued rise in backlogged works. Prices data showed both input and output price inflation quickened, amid rising raw material prices and efforts by many firms to pass these costs on to their clients. Looking ahead, sentiment remained upbeat, though the degree of optimism eased marginally, on concerns over the second wave of coronavirus and subsequent disruption across the sector.