CEIC News@lert: Introducing the Prompt Manufacturing Index Datasets

Indonesia Prompt Manufacturing Index Dataset
Indonesia Prompt Manufacturing Index Dataset

CEIC News@lert/Indonesia Premium Database - April 27, 2016 The CEIC Database Team is pleased to announce the inclusion of the Prompt Manufacturing Index (PMI) in both the Global Indonesia the Indonesia Premium Database. CEIC is the first data vendor to cover the PMI statistics via a direct arrangement with Bank Indonesia. This provides CEIC with access to the full historical data including updates on historical revisions (if available). The PMI dataset is part of the Bank Indonesia Business Survey (BIBS), compiled by the central bank, which covers business activities, production capacity, financial conditions and labour utilisation, among other indicators. The BIBS is conducted and released quarterly by Bank Indonesia. PROMPT MANUFACTURING INDEX The Prompt Manufacturing Index is a composite index that provides a general overview of the manufacturing sector. This indicator provides user with a broad view on the prevailing manufacturing sector performance and its outlook for the subsequent quarter, aggregating the views of the survey respondents. They comprise approximately 900 medium-to-large sized companies involved in a broad range of manufacturing processes. Respondents are selected through a “stratified purposive” sampling procedure to provide a meaningful representation of manufacturing industries within Indonesia, which include: 1. Food, Beverages and Tobacco 2. Textile, Leather Products and Footwear 3. Wood Products 4. Paper and Printing 5. Fertilisers, Chemicals and Rubber Products 6. Cement and Non-Metallic Mineral Products 7. Iron and Basic Steel 8. Transport Equipment, Machinery and Apparatus 9. Other Manufacturing Products All indices (including the PMI and the individual indices) are weighted net balances of positive and negative responses by the survey’s respondents – an index reading above 50 signals expansion, while a reading below 50 signals a contraction for a particular index. As a composite index, the PMI is based on the weighted values of five separate individual variables as follows: INDONESIA’S MANUFACTURING SECTOR PERFORMANCE (2015) Indonesia’s manufacturing sector was relatively pessimistic during 2015, with the PMI (net balance) hovering at around 44%-50%. This poor performance was highlighted by the weak outlook of the new order volume component (which hovered around 44-45% during the period) and to a lesser extent the poor showing of the supplier delivery time and employment sub-indices. The weakness in the PMI coincided with tepid growth in the Industrial Production Index and the manufacturing component of GDP, which averaged 0.99% and 1.07% growth respectively during 2015. Despite a weak start during Q1;2016 with the index falling to 46.69% (from 48.23% in Q4;2015), respondents expect a rebound in the PMI during Q2;2016 on the back of stronger optimism over the production level (which is expected to rise to 60.55% in Q2;2016 from 47.20% in Q1;2016) and employment level (which is expected to rise to 52.58% in Q2;2016 from 46.61% in Q1;2016). However, the respondents remain cautious on the outlook for New Orders and Speed of Delivery with remained fairly unchanged scores of 45.21% and 47.35% respectively. By Ian Lim - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog

27th April 2016 CEIC News@lert: Introducing the Prompt Manufacturing Index Datasets

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