Business activity improved in the second quarter, indicated by the increase of weighted net balance (WNB) to 19.17 percent from 8.65 percent in the previous quarter, according to a survey conducted by Bank Indonesia (BI).
The improved business performance was mainly supported by activities in trade, accommodation and food service, as well as the manufacturing sector on the back of increasing domestic demand, the central bank said in a statement on Thursday.
The survey also records an increase in average production capacity utilization and labor utilization in the second quarter.
Average production capacity utilization increased to 77.18 percent in the second quarter from 76.10 percent, while the WNB of labor utilization increased from 2.37 percent to 2.47 percent in the second quarter, BI says.
Corporate liquidity and profitability improved in the second quarter, supported by relatively accessible bank loans, the central bank says.
The survey respondents estimate business expansion will continue in the subsequent period, driven by the financial sector, real estate, corporate services and the services sector, although expansion will not be as big as in the second quarter.
Meanwhile, BI also released the latest prompt manufacturing index (PMI), which increased to 52.66 percent in the second quarter from 52.65 percent in the previous quarter, indicating expansion in the manufacturing industry.
The respondents estimate the manufacturing industry will grow in the third quarter, but at a slower pace, as the PMI would be at 52.11 percent. (bbn)