Indonesia’s manufacturing PMI falls to record low in April-June on pandemic
JAKARTA, NNA – Indonesia’s manufacturing PMI fell to its lowest level ever in the April-June quarter as the COVID-19 outbreak heavily weighed on production activities in Southeast Asia’s largest economy.
The reading dropped to 28.55 from 45.64 in the preceding three months through March, marking the second consecutive quarterly decline, Bank Indonesia, the central bank, said in a statement on Monday.
In the manufacturing sector, a figure above 50 represents an expansion and under 50 a contraction.
In the reporting quarter, all the five major elements including output, new orders, and inventory were below 50. By sectors, all industries also suffered low readings under the boom-or-bust line.
The central bank attributed the sharp drop to a fall in overall demand caused by the spread of the novel coronavirus and disruption in supply chains.
Bank Indonesia predicts the current July-September quarter could see an improvement in the performance of the manufacturing sector, with the reading shooting up to 45.72, saying the highest increase would occur in the elements of new orders and production.
The Indonesian government has been gradually easing large-scale movement restriction orders since last month.