The S&P Global Indonesia Manufacturing PMI fell to 50.8 in May 2022 from 51.9 in the previous month. This was the ninth straight month of growth in factory activity, but the least in the sequence, amid supply constraint. Output shrank for the first time in nine months, while employment growth softened and there was a renewed accumulation of backlogged work. At the same time, both new orders and foreign sales increased; and firms also went up their quantity of purchases, leading to higher levels of pre-production inventories.
Delivery times continued to lengthen and at a rate that was faster than the series average, due to supply shortages and transportation delays. On prices, input cost inflation and output charge inflation softened slightly from April, but remained sharper than their respective averages. Finally, sentiment stayed positive, but the level of optimism slipped to a three-month low.