Construction PMI records highest index value in 30 consecutive survey rounds

Thursday, 1 August 2024 04:01 - - {{hitsCtrl.values.hits}}

Industry outlook for next three months is positive
Firms remain cautious on potential uncertainty associated with upcoming election

Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction) indicates an expansion in construction activities in June 2024, as reflected by the total activity index which recorded an index value of 59.5.

The Central Bank said this was its highest index value in 30 consecutive survey rounds.

Many respondents highlighted that the industry is mainly driven by projects funded by multilateral agencies, particularly related to road rehabilitation and water distribution.

New orders increased at a higher rate in June, indicating a positive outlook for future industry activity.

However, employment remained contracted during the month, yet at a slower rate compared to the previous month.

Meanwhile, the quantity of purchases increased with the accelerated demand for input materials.

Further, many respondents mentioned that the price levels of most of the construction materials are in a declining trend.

Suppliers’ delivery time further lengthened during the month.

The industry outlook for the next three months is positive mainly due to the gradual increase in project availability.

However, many firms are cautious about the potential uncertainty associated with the upcoming election period.