Indonesia Manufacturing Contracts at Slower Rate
The S&P Global Indonesia Manufacturing PMI rose to 47.4 in May 2025 from April’s near four-year low of 46.7, signaling a softer drop in factory activity. However, this was the second straight month of decline, with output falling again, though at a slower pace.
New orders shrank the most since August 2021, and foreign sales dropped further, particularly to the U.S. Buying levels fell for the second month, and firms reduced both pre- and post-production inventories.
Despite weaker demand, delivery times lengthened to a nine-month high due to poor weather and delays.
Employment rose for the fifth time in six months, as companies prepared for a recovery and used additional capacity to reduce backlogs, though the pace slowed.
Input cost inflation strengthened for the first time in three months amid broad raw material price increases.
Yet, firms increasingly absorbed costs and offered discounts, leading to only marginal output price growth. Finally, sentiment improved on hopes of recovery.
Source: trading Economi
