Construction sector growth slows in November

Saturday, 4 January 2025 02:21 - - {{hitsCtrl.values.hits}}

The construction sector growth had slowed in November according to Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction).

Its compiler the Central Bank of Sri Lanka said PMI Construction expanded, albeit at a slower pace in November 2024, recording a Total Activity Index value of 51.4. In October it was 54.3.

CBSL said several respondents mentioned that the severe weather conditions that prevailed during the month somewhat disrupted their scheduled work.

Many survey respondents highlighted a slowdown in the tender evaluation process of construction projects towards the end of the year, leading to a decline in the New Orders index in November. Firms remain cautious about expanding their workforce, as reflected by the continuous decline in the Employment index.

The Quantity of Purchases index was recorded at the neutral threshold in November, indicating that the material purchases stayed at a similar level as in the previous month. Meanwhile, Suppliers’ Delivery Time lengthened in November.

“The expectations for the next three months are positive, as most firms are optimistic about the future availability of projects from January and favourable weather conditions,” the CBSL added.