Indonesia Manufacturing Job Growth Hits Record High: PMI Survey
Jakarta. Employment growth in Indonesia's manufacturing industry hit a record high in June as companies scaled up to match higher order books, signaling the possibility that an economic recovery may well be around the corner, the Nikkei Indonesia Manufacturing purchasing managers' index survey revealed on Friday (01/07).
"June's manufacturing PMI data for Indonesia provide more positive signals, as operating conditions improved to the greatest extent in almost two years," Pollyanna De Lima, an economist at Markit, who compiled the survey, said in a note.
The PMI — a composite of manufacturing output, new orders, exports and employment measures — increased to 51.9 in June, compared to 50.6 a month earlier. Any readings above 50 indicate an overall increase.
The report highlighted that the rate of increase in new orders and output both reached 23-month high. Output growth resumed in June after suffered from a stagnation a month earlier as the improving domestic demand matched the slower decrease of new orders from abroad.
Both preproduction and postproduction inventories also increased in the period, while the manufacturing employment rose to the fourth successive months in June — the sharpest pace on record since 2011.
"Looking ahead, a survey-record rise in employment suggests that businesses expect the upturn in incoming new work to be sustained as we move into the second half of the year," De Lima said.
"Meanwhile, a stronger increase in costs combined with better demand conditions is likely to lead goods producers to further increase their own charges in the near term," she said.
Indonesia's Central Statistics Agency (BPS) announced earlier on the same day that June's annual inflation rate stood at 3.45 percent, compared to May's 3.33 percent as price pressures increased towards the end of the Islamic fasting month and the Idul Fitri celebration.
Tags: Keywords: