Bank Indonesia: Prompt Manufacturing Index Records Lowest Ever Level

According to a survey published by Bank Indonesia (BI), BI’s Prompt Manufacturing Index came in at 28.55% for the second quarter of 2020, compared with 45.64% recorded during the first quarter of 2020. BI notes that an index reading of above 50 reflects an expansion, whilst any level below 50 indicates a contraction. According to the survey, key component indexes, including those for overall output and new orders contracted for the second consecutive quarter.

BI stated that the contraction in the second quarter was led by COVID-19-induced lower levels of demand and supply chain disruptions. Despite expecting a contraction in the third quarter 2020 performance, BI anticipates manufacturing sector performance to pic...