Jakarta – The country's manufacturing sector grew slower in June as indicated by a decline in the purchase manager index (PMI) to 50.6 from 51.06 in the previous month.

An index rate above 50 indicates growth in the manufacturing sector.

Securities firm Samuel Sekuritas economist Ahmad Mikail said the drop was in line with the World Bank revising down its growth domestic product projection (GDP) for Indonesia from 5.2 percent to 5.1 percent this year.

A sales slowdown for automotive products also contributed to the weakening PMI in the manufacturing sector.

"This sector gave a significant contribution [to the country's economy]," Ahmad said on Tuesday as quoted by kontan.co.id.

Meanwhile, Indonesian Textile Association (API) chairman Ade Sudrajat Usman said the textile industry weakened significantly, including in June, because of the global economic slowdown.

Meanwhile, Indonesian Food and Beverage Producers Association (Gapmmi) deputy chairman Adhi Lukman said production of food and beverages (F&B) slowed down in June after being boosted in the previous month to anticipate the Idul Fitri holiday.

He added that production activities in the manufacturing sector declined because many factories had to close temporarily because of the extended Idul Fitri break.

"Production in the food and beverages sector only went on for 12 days [in June]," Adhi said.

However, F&B sales grew by 20 percent in June, a notable jump from the 10 percent average in regular months, he added. (bbn)

Source: https://www.thejakartapost.com/news/2019/07/03/manufacturing-sector-sees-slowdown-in-june.html