The manufacturing sector in Indonesia continued to expand in May, albeit at a slower rate, the latest survey from S&P Global revealed on Monday with a manufacturing PMI score of 50.3.
That's down from 52.7 in April, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Central to the drop in the headline PMI reading was a renewed deterioration in new orders. The volume of new work fell for the first time since August 2021, after rising at the fastest rate in seven months in April. Foreign demand also waned, with new orders from abroad falling for the twelfth month in a row, with both domestic and international orders affected by weaker market conditions, according to panelists.
Despite the decline in new business, existing workloads and improved supply conditions led to a further increase in production in May. The pace of expansion slipped to a six-month low, but nevertheless extended the current growth streak to a year.
