Activity in Indonesia’s manufacturing sector grew in March 2019 on the back of solid domestic demand. The Nikkei Indonesia Manufacturing Purchasing Managers’ Index (PMI) accelerated to a reading of 51.2 in March, from 50.1 in the preceding month (a reading above 50.0 indicates expansion in the manufacturing sector, while a reading below 50.0 indicates contraction). It also meant that Indonesia managed to outperform its regional peers as the average PMI in the ASEAN counties stood at 50.3 in March. Overall, survey data show a marginal expansion in Indonesia’s manufacturing economy during the first quarter of 2019.
The month of March brought signs of strengthening demand conditions. New order inflows rose from the previous month. However, this was caused by solid domestic demand as export sales declined further. In response to greater demand, Indonesian manufacturing companies raised their production volumes for the first time in three months.
Higher output made manufacturing companies decide to scale up purchasing activity and build-up inventories of input materials. In fact, the rate of increase in buying activity was the strongest since May 2018. The accumulation in stocks of purchases was also the quickest for over four-and-a-half years and solid overall.
Read the full article in the March 2019 edition of our monthly research report. You can purchase the report by sending an email to email@example.com or a WhatsApp message to the following number: +62(0)8788.410.6944
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