The S&P Global Indonesia Manufacturing PMI declined to 50.3 in May 2023 from April’s six-month high of 52.7. The latest result indicated the 21st straight month of expansion but the weakest pace since last November, as output growth eased, amid a renewed contraction in new orders with both domestic and international orders affected by weaker market conditions. Purchasing activity meanwhile increased due to rising production, but the rate of growth also softened as demand fell.
Meanwhile, employment continued to rise, lifted by higher production. However, the job of creation remained marginal. On the pricing front, input cost inflation eased to the slowest rate since November 2020, due to weaker raw material price hikes. As a result, output cost inflation accelerated slightly and at a pace well below the series average. Finally, business confidence weakened as concerns over the outlook partly offset hopes for better sales in the coming months.