The manufacturing sector in Indonesia continued to expand in May, and at a faster pace, the latest survey from Markit Economics revealed on Wednesday with a record-high manufacturing PMI score of 55.3.
That’s up from 54.6 and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
The two biggest components of the headline index, output and new orders, were the main contributors to the record improvement of the manufacturing sector in May. Firms saw a stronger increase in overall demand, supported by a second month of international new order growth, which led to rising manufacturing production in May.
To meet the needs of increasing new orders and production, manufacturers ramped up their acquisition of raw materials and semi-finished goods, expanding purchasing for the fourth consecutive month.