The S&P Global Indonesia Manufacturing PMI decreased to 52.3 in September 2023 from August’s 21-month high of 53.9. This was the 25th straight month of expansion in factory activity but the softest pace since May, with both output and new orders growth easing, despite foreign sales rising faster amid reports of firmer client demand across key export markets. Employment growth moderated and was only marginal, with backlogs of work declining, as firms lifted their staffing levels to cope with greater production. Purchasing activity rose, while vendor performance improved supported by greater material availability and more efficient transportation. On prices, input cost inflation accelerated to a five-month high, due to higher raw material, transportation, and financing costs. As a result, firms opted to partly share their higher costs with their clients by raising their selling prices again. Lastly, confidence strengthened to an 11-month high, amid hopes of improving market conditions.
