Indonesia's manufacturing sector has shown promising signs of recovery, according to the latest S&P Global Manufacturing Purchasing Managers' Index (PMI) data for May 2025. The index rose to 47.4 from April's 46.7, suggesting that the manufacturing sector is on a slow path to recovery even though it remains below the 50 thresholds that separate expansion from contraction.
The slight increase in the PMI indicates a positive sentiment among manufacturers, who may be slowly increasing production and workforce numbers despite ongoing challenges. Key factors likely influencing this uptick include gradual improvements in domestic demand and stabilization in global supply chains, which have been volatile in recent months.
The data, updated on June 2, 2025, provides a cautiously optimistic outlook for Indonesia's manufacturing industry as it works to regain momentum. While the recovery trajectory may be gradual, the upward movement in the PMI is a hopeful indicator of economic resilience and potential growth in the upcoming months. Market analysts are hopeful that continued improvement in these areas could eventually push the PMI into expansion territory, signaling robust growth for the sector.
