Minister warns of decline in national manufacturing PMI. | So Good News

This situation will be our challenge in 2023.

JAKARTA (ANTARA) – Finance Minister Sri Mulyani Indrawati warns that the National Manufacturing Purchasing Managers’ Index (PMI) has declined to 51.8 in October 2022 from 53.7 in September 2022.

In the past 14 months, The index has always been at broad levels. However, the level started to decline last month.

“We need to be cautious as this decline includes very important manufacturing activities,” Minister Indrawati said at a press conference on the State Budget Performance and Data (APBN Kita) held in November 2022.

However, She pointed out that manufacturing and mining capacity continued to grow close to the pre-COVID-19 pandemic rate, which stood at 73.5 and 73.2 for manufacturing.

This capacity rate implies that the manufacturing sector is recovering as it continues to increase its activity until it is at par with the pre-pandemic period.

Other production and investment indicators, such as electricity consumption growth, remained very high in industry and business, rising 5.7 percent year-on-year (yoy) and 12.5 percent (yoy), respectively.

However, she noted that the growth trend pointed in the opposite direction compared to previous months.

“It’s really influenced by global factors to watch. So we’re optimistic but cautious,” she noted.

Therefore, the Minister of Manufacturing Index, Growth in electricity consumption and manufacturing and mining capacity as indicators of production and investment will continue to gauge whether global volatility is resilient.

“This situation will be our challenge in 2023,” she concluded.

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