Indonesia’s manufacturing sector expanded at its fastest pace in 31 months in October, according to S&P Global, with the purchasing managers’ index rising to 54 from 52.4 in September. The reading places Indonesia ahead of Japan at 53.3, China at 52 and South Korea at 51.3 in the survey’s Asia-Pacific comparison.
Exports and orders lead the gain
Output and new orders both rose during the month. New export orders grew at the fastest rate since S&P Global began collecting the data in April 2011. Usamah Bhatti, an economist at S&P Global Market Intelligence, said the sector had improved for two consecutive months at the start of the fourth quarter.
Employment rose only slightly. Input costs climbed faster on higher raw material and fuel prices and a weaker currency, and output prices rose more quickly in October.
Supply chains ease for first time in a year
Supplier delivery times shortened for the first time in more than a year, a sign that bottlenecks were easing. Trevor Balchin, economics director at S&P Global, said earlier that the third quarter had closed very strongly.
The Ministry of Industry said the gains had to show up beyond the survey. Minister Muhammad Sarmuji said the government wanted growth reflected in production, investment, exports and jobs, and warned industry against complacency because some countries were performing better.
Related: Euro Area factory activity slips to 52.7 in October · Indonesia's October inflation at 0.22% on red chili prices
Source: S&P Global
