Construction sector expands in March; employment dips

Thursday, 2 May 2024 03:19 - - {{hitsCtrl.values.hits}}

The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction) indicates an expansion in construction activities in March, as reflected by the Total Activity Index, which recorded an index value of 55.9.

“This is the third consecutive month that the index remained above the neutral threshold, denoting a steady improvement in construction activities,” Central Bank said.

It said new orders increased in March at a slower pace on month-on-month basis. Most respondents mentioned that projects are available to tender yet there is stiff competition in pricing. The employment continued to decline in the backdrop of continuous turnover of experienced staff and cautious hiring of employees. Quantity of purchases increased during the month in parallel to the increase in activity levels. Further, price levels of certain types of construction materials declined during the month.

In March, suppliers’ delivery time lengthened at the same rate as in the previous month.

Most of the firms expect the construction activities to remain at the current level for the next three months, the Central Bank added.