Jakarta: Bank Indonesia's latest Prompt Manufacturing Index (PMI-BI) stood at 52.66% in the second quarter of 2019, rising slightly from 52.65% in the previous period.
The manufacturing industry has expanded in line with manufacturing activity, as confirmed by the results of the Business Survey (SKDU) conducted by Bank Indonesia in the second quarter of 2019, which pointed to a weighted net balance (WNB) of 3.57%.
"The Manufacturing Industry gains were driven by an uptick of order volume to meet increasing demand," the Central Bank
The survey respondents predicted expansive manufacturing industry performance to persist in the third quarter of 2018 despite retreating slightly, as indicated by a moderate decrease in the PMI-BI to 52.11%.
The respondents expected a bump in production volume to induce manufacturing industry expansion in the second quarter of 2019.
In the meantime, he results of the latest Business Survey conducted by Bank Indonesia (BI) revealed an improvement in business activity during the second quarter of 2019 compared with conditions in the previous period.
Such developments were confirmed by a weighted net balance (WNB) of 19.17% in the reporting period, increases from 8.65% in the first quarter of 2019. The gains were led by Trade, Accommodation and Food Service Activities as well as the Manufacturing Industry on the back of increasing domestic demand.
Congruent with stronger growth, the survey also showed how average production capacity utilisation and labour utilisation had increased in the second quarter of 2019 compared with the previous period.
Production capacity utilisation averaged 77.18% in the second quarter of 2019, increasing from 76.10% in the previous period. Meanwhile, the WNB of labour utilisation ticked upwards from 2.37% in the first quarter of 2019 to 2.47% in the second quarter of 2019. In terms of financial conditions, corporate liquidity and profitability improved in the second quarter of 2019, accompanied by relatively accessible bank loans.
The survey respondents predicted business expansion to persist in the subsequent period, driven by Financial, Real Estate and Corporate Services as well as the Services Sector, despite the WBN retreating to 16.19% in the third quarter of 2018.