PMI Manufacturing is Increasingly Expansive, Ministry of Finance: Support for Economic Growth

Illustration (Photo: Doc. Antara)

JAKARTA-The Ministry of Finance (Kemenkeu) said that the Indonesian manufacturing sector consistently continued expansion (levels above 50) for 23 consecutive months.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said that this positive indication was seen from the Purchasing Managers Index (PMI) Manufacturing July 2023, which perched at 53.3.

"This level increased from June 2023 which was 52.5," he said through a press release today, Tuesday, August 1.

Febrio explained, the strengthening of PMI Manufacturing was encouraged to increase new demand, both domestically and exports.

Meanwhile, the development of manufacturing performance of several major trading partner countries such as China and Japan contracted, respectively at 49.2 and 49.6.

"Other ASEAN countries such as Malaysia and Vietnam are still contracted at 47.8 and 48.7 levels," he said.

Febrio added, the increase in manufacturing PMI in the July period showed the optimism of business actors as economic conditions improved.

"Overall the sentiment of business actors in the Indonesian manufacturing sector remains positive in July. The recovery of export demand to the expansive level increases the overall aggregate demand so that it is expected to sustain the performance of economic growth in this second semester, "he stressed.