The S&P Global Indonesia Manufacturing PMI increased to 52.2 in December 2023 from 51.7 in the prior month. It was the 28th straight month of expansion in factory activity and the strongest pace since September, as output growth hit a four-month peak and new orders rose the most since September. Further, foreign demand gained for the first time in three months, employment grew for the second month in a row, and buying levels continued to rise. Meantime, a slight accumulation of backlogged work reflected improvements in demand conditions while delivery times improved slightly. On prices, input cost rose again, extending the current period of inflation to just over four years amid higher raw material, shipping, and currency conversion costs. Meantime, manufacturers raised their selling prices at a slightly quicker rate. Rates of both input cost and output price inflation, however, remained below their averages. Finally, sentiment notched its highest since October 2022.
