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Indonesia's Manufacturing Sector Grows at Record Pace in October 2021: IHS Markit

Wahyu Dwi Anggoro - 02 November 2021 11:39 WIB
Indonesias Manufacturing Sector Grows at Record Pace in October 2021: IHS Markit
This represented a second straight month of improving business conditions across the Indonesian manufacturing sector.
Jakarta: The further easing of COVID-19 restrictions enabled the Indonesian manufacturing sector to grow at a survey-record pace in October, according to the latest IHS Markit PMI™ data.

The IHS Markit Indonesia Manufacturing Purchasing Managers’ Index™ (PMI™) posted 57.2 in October, up from 52.2 in September.
This represented a second straight month of improving business conditions across the Indonesian manufacturing sector. 

The rate of growth was the fastest since the survey began in April 2011.

"The increases in demand and output also translated to better manufacturing sector confidence, as seen both through the Future Output Index and in firms’ buying and hiring activity, all positive signs for the sector going forward," said IHS Markit Economics Associate Director Jingyi Pan in a press release on Monday.

"Supply constraints persisted, however, with firms seeing an increase in price pressures and longer lead times in October. While this is not unique to Indonesia, it will be worth watching whether supply issues will dampen the economic recovery in the months ahead," the economist added.

Overall business sentiment meanwhile improved in October, rising to a level above the series average. 

Survey respondents were generally hopeful that Indonesian economy will continue to improve as COVID-19 disruptions to the manufacturing sector ease. 

(WAH)

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