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Indonesia's Manufacturing Industry Moves into Expansionary Phase in Q4 2021: BI

Wahyu Dwi Anggoro - 14 January 2022 16:07 WIB
Indonesias Manufacturing Industry Moves into Expansionary Phase in Q4 2021: BI
Respondents predicted the manufacturing industry gains to persist in the first quarter of 2022.
Jakarta: The latest Prompt Manufacturing Index-Bank Indonesia (PMI-BI) moved above the 50% threshold into an expansionary phase in the fourth quarter of 2021 at 50.17% from 48.75% in the third quarter of 2021. 

All components contributed to the improvement, led by Production Volume, Order Volume and Inventory. 
Furthermore, most subsectors enjoyed gains, with the highest index readings for Food, Beverages and Tobacco (51.84%), Basic Iron and Steel (51.80%) Textiles, Leather Products and Footwear (50.98%) as well as Transportation Equipment, Machinery and Apparatus (50.66%).  

"Recent PMI-BI trends are consistent with the latest findings of the Business Survey (SKDU) published by Bank Indonesia, where the corresponding weighted net balance (WNB) improved to 0.50%," BI Communication Department Head Erwin Haryono in a press release on Friday.

Respondents predicted the manufacturing industry gains to persist in the first quarter of 2022, with the PMI-BI improving further to 53.83% on the back of all components, particularly Production Volume, Order Volume, Inventory and Labour, which were recorded in expansionary territory. 

Moreover, respondents expected most subsectors to gain momentum, with the highest index readings recorded in the Basic Iron and Steel subsector (54.06%), Food, Beverages and Tobacco (53.86%) as well as Wood Products and Other Forest Products (53.40%).

(WAH)

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