Indonesia Manufacturing PMI Jumps to 50.2 in July as Factories Resume Hiring
Updated
Updated · investortrust.id · Aug 3
Indonesia Manufacturing PMI Jumps to 50.2 in July as Factories Resume Hiring
3 articles · Updated · investortrust.id · Aug 3
Summary
Indonesia’s factory PMI rose to 50.2 in July from 46.9 in June, moving back above the 50 threshold and ending a stretch of contraction.
Stabilizing new orders, firmer client demand and new product launches helped lift output after four monthly declines, even as export orders fell for a fifth straight month.
Backlogs grew at the fastest pace since November 2025, prompting manufacturers to add staff for the first time in five months and draw down finished-goods inventories to meet demand.
Input cost inflation slowed to a four-month low, easing pressure on margins, while firms still cut raw-material purchases and pre-production stocks amid weak foreign demand.
Business optimism for the next 12 months reached its highest since January 2026, with manufacturers looking for further relief on prices and watching Middle East developments.