JAKARTA, Jan — Operating conditions across the Indonesian manufacturing sector continued to improve in December 2021, though the pace softened since November amid supply issues, a survey showed on Monday.
According to IHS Markit, headline manufacturing purchasing managers’ index (PMI) of the Southeast Asia’s largest economy slipped to 53.5 last month from 53.9 in November.
Persistent supply constraints remain a key concern for the manufacturing sector, as vendor performance deteriorated further and companies reported steeper price pressures.
“It will be important to monitor if this continues to affect production, or even affects the current growth momentum moving forward,” IHS Markit economics associate director Jingyi Pan said in a statement.
However, the latest PMI data represented a fourth straight month of improving business conditions across the sector as purchasing activity picked up.
“Overall sentiment remained highly positive, with the level of business confidence above the long-run average to suggest that manufacturers remain optimistic about continued growth in production over the course of 2022,” Jingyi said. — Bernama
