Indonesia manufacturing on record high

yamaha motorIndonesian manufacturing activity surged to a record high in May, driven by unprecedented growth in new orders, an HSBC Markit purchasing managers’ index (PMI) survey showed on June 2.

The index rose to 52.4 in May from 51.1 the previous month, the highest reading since data collection began in April 2011. A reading above 50.0 signals expansion.

New orders increased to the highest level on record, as companies signaled increasing levels of new work, strengthening demand and successful launches of new products in Southeast Asia’s largest economy.

“In the months ahead, a persistence of the trends seen in the May PMI would signal that the policy-induced slowdown in domestic activity is starting to bottom out,” said Su Sian Lim, economist at HSBC.

The report also noted that new business from abroad rose for the fifth straight month, fueled by an increase in demand from key export clients. Despite the expansion in export demand being modest, it represented the fastest rate in a year.

While cost inflation weakened to a 11-month low, factory gate prices also rose at the slowest rate since August last year. The rate of increase in factory gate prices was lower than that of input costs.

Employment in the manufacturing sector declined in May following a marginal increase seen in the previous month.



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Indonesian manufacturing activity surged to a record high in May, driven by unprecedented growth in new orders, an HSBC Markit purchasing managers' index (PMI) survey showed on June 2. The index rose to 52.4 in May from 51.1 the previous month, the highest reading since data collection began in April 2011. A reading above 50.0 signals expansion. New orders increased to the highest level on record, as companies signaled increasing levels of new work, strengthening demand and successful launches of new products in Southeast Asia's largest economy. "In the months ahead, a persistence of the trends seen in the May...

yamaha motorIndonesian manufacturing activity surged to a record high in May, driven by unprecedented growth in new orders, an HSBC Markit purchasing managers’ index (PMI) survey showed on June 2.

The index rose to 52.4 in May from 51.1 the previous month, the highest reading since data collection began in April 2011. A reading above 50.0 signals expansion.

New orders increased to the highest level on record, as companies signaled increasing levels of new work, strengthening demand and successful launches of new products in Southeast Asia’s largest economy.

“In the months ahead, a persistence of the trends seen in the May PMI would signal that the policy-induced slowdown in domestic activity is starting to bottom out,” said Su Sian Lim, economist at HSBC.

The report also noted that new business from abroad rose for the fifth straight month, fueled by an increase in demand from key export clients. Despite the expansion in export demand being modest, it represented the fastest rate in a year.

While cost inflation weakened to a 11-month low, factory gate prices also rose at the slowest rate since August last year. The rate of increase in factory gate prices was lower than that of input costs.

Employment in the manufacturing sector declined in May following a marginal increase seen in the previous month.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00