Indonesia Manufacturing PMI Lowest in A Year

2026-07-01 00:38 By Farida Husna 1 min. read

Indonesia’s S&P Global Manufacturing PMI fell sharply to 46.9 in June 2026 from 50.0 in May, marking the lowest reading since June 2025 and signaling the sector's second contraction this year.

New orders dropped for the first time in three months, at the sharpest pace in a year, underscoring softer purchasing power amid rising prices.

Export sales also tumbled, marking their steepest decline since August 2021.

Meanwhile, output shrank for a fourth straight month, the fastest since April 2025.

Firms cut input purchases and jobs at the quickest rates in nearly five years.

Backlogs eased again, and supplier delivery times lengthened for a ninth month, though delays were milder.

On the cost side, inflationary pressures intensified: input costs surged to the second-highest level since the survey began in 2011, prompting the fastest rise in selling prices since 2013.

Despite the downturn, sentiment brightened to a three-month high, with firms hopeful that cost pressures will gradually ease.



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Indonesia Manufacturing PMI Lowest in A Year
Indonesia’s S&P Global Manufacturing PMI fell sharply to 46.9 in June 2026 from 50.0 in May, marking the lowest reading since June 2025 and signaling the sector's second contraction this year. New orders dropped for the first time in three months, at the sharpest pace in a year, underscoring softer purchasing power amid rising prices. Export sales also tumbled, marking their steepest decline since August 2021. Meanwhile, output shrank for a fourth straight month, the fastest since April 2025. Firms cut input purchases and jobs at the quickest rates in nearly five years. Backlogs eased again, and supplier delivery times lengthened for a ninth month, though delays were milder. On the cost side, inflationary pressures intensified: input costs surged to the second-highest level since the survey began in 2011, prompting the fastest rise in selling prices since 2013. Despite the downturn, sentiment brightened to a three-month high, with firms hopeful that cost pressures will gradually ease.
2026-07-01
Indonesia Manufacturing Stabilises in May
Indonesia’s S&P Global Manufacturing PMI rose to 50.0 in May 2026 from April’s ten-month low of 49.1, signaling broadly stable factory conditions. New orders expanded for a second straight month, with growth at its fastest since February. Yet export orders fell for a third month and at the steepest pace since August 2021, as Middle East conflict disruptions continued to weigh on trade. Output shrank again, though less sharply than in April, while raw material shortages forced firms to cut purchases. Backlogs of work increased for the first time since February, underscoring supply constraints, while employment slipped for a third month, albeit marginally. On prices, input cost inflation accelerated to its second-highest on record, driven by surging raw material prices, prompting the strongest selling price hikes since October 2013. Supplier performance deteriorated further amid delivery delays. Finally, business confidence improved slightly, with optimism still muted overall.
2026-06-02
Indonesia Manufacturing PMI Falls to 10-Month Low
Indonesia’s S&P Global Manufacturing PMI edged down to 49.1 in April 2026 from 50.1 in the previous month, marking its lowest level since June 2025 and signaling the first contraction in factory activity in nine months. Employment dropped at the fastest rate in ten months, and backlogs of work declined further. Firms trimmed purchasing activity slightly, in line with softer production needs. Meanwhile, ongoing delivery delays and supply constraints led manufacturers to draw down pre-production inventories to sustain output. New orders still inched higher, though largely driven by advance buying as clients sought to hedge against further price increases and supply disruptions. On inflation, cost pressures intensified, with input inflation reaching a four-year high, prompting firms to raise selling prices at the strongest pace since October 2013. Finally, business sentiment eased to a five-month low, amid concerns over prolonged tensions in the Middle East.
2026-05-04