Indonesia’s manufacturing sector returned to growth in July, with the S&P Global Purchasing Managers’ Index (PMI) rising to 50.2, according to data released Monday.
The reading crossed the critical 50.0 threshold, which separates expansion from contraction, signaling a modest recovery in industrial activity after a period of stagnation.
The Indonesia Chamber of Commerce and Industry (Kadin) cautioned that the recovery is fragile and requires continued policy support to prevent a relapse into contraction.
The improvement suggests that demand conditions are stabilizing, but the margin above the expansion line remains narrow.
The Indonesia Chamber of Commerce and Industry (Kadin) cautioned that the recovery is fragile and requires continued policy support to prevent a relapse into contraction.
Business leaders highlighted that while output is picking up, structural challenges and external headwinds continue to weigh on confidence.
The data adds to a broader picture of tentative stabilization across emerging-market manufacturing hubs.