Illustration ( Rizal)

Jakarta: The Manufacturing Industry slipped into a deeper contraction in the second quarter of 2020, as reflected by a further decline in the Bank Indonesia Prompt Manufacturing Index (BI-PMI) to 28.55 percent from 45.64 percent in the first quarter of 2020 and 52.66 percent in the second quarter of 2019.

"All components of the BI-PMI posted declines in the reporting period, most significantly production volume as the covid-19 pandemic continues to compress demand," the central bank said in a release on Monday.

"All subsectors recorded a contraction in the second quarter of 2020, with the deepest recorded by the Textiles, Leather and Footwear subsectors," it stated."

In the third quarter of 2020, survey respondents predicted early signs of manufacturing industry improvement despite remaining in a contractionary phase with the BI-PMI improving to 45.72 percent from 28.55 percent in the previous period. 

All components were expected to improve, led by order volume and production volume, yet remain below the 50 percent threshold indicating contraction. 

"The highest increase occurred in the index of the total volume of orders and production volumes," it stated.

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