Indonesia Manufacturing PMI Rises to 5-Month High

Indonesia's S&P Global Manufacturing PMI rose to 50.2 in July 2026 from 46.9 in June, marking its highest reading since February. Output rose after four months of decline, though growth was marginal, while new orders steadied following June’s sharp drop. Meanwhile, export sales remained weak, falling for a fifth month. Rising workloads drove the strongest backlog buildup since November 2025, prompting firms to add staff for the first time in five months, albeit modestly. Purchasing activity slipped again, though only fractionally. Delivery times lengthened for a tenth month due to shipping delays, but the deterioration was the mildest in the current sequence as material availability improved. Input cost inflation eased to a four-month low yet stayed elevated on pricier raw materials, leading to another sharp rise in selling prices. Finally, sentiment hit its highest since January, supported by expectations of firmer sales, improving customer sentiment, and softer cost pressures.

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.

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.