Indonesia’s manufacturing activity rose to its highest level since July 2014, as the sector continued its gradual recovery from the pandemic-induced downturn for four consecutive months, although domestic demand is expected to remain slow and extended restrictions still pose risks going forward.

The country’s manufacturing Purchasing Managers’ Index (PMI) further rose to 52.2 in January from 51.3 in December last year, according to business information provider IHS Markit on Monday. A reading above 50 reflects an expansion from the previous month.

“The Indonesian manufacturing sector remained on the path to recovery at the start of 2021, with growth of output and new orders among the best in the decade-long survey so far,” IHS Markit economist director Andrew Harker was quoted in the press release as saying.

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