Construction sector outlook positive as per industry PMI

Saturday, 2 December 2023 01:19 - - {{hitsCtrl.values.hits}}

The construction industry’s outlook for the next three months is positive, mainly due to the gradual recovery in the economy and the expected increase in project work according to SL Purchasing Managers’ Index (PMI) for Construction Industry – October 2023.

However, the firms are concerned about the upward tendency in energy-related costs and the impact of the upcoming tax revisions, said the Central Bank which compiles the Index.

It said the Total Activity Index reached the neutral threshold of 50.0 in October 2023 after twenty consecutive months of contraction.

“Several respondents mentioned that some of the suspended Government-funded projects recommenced at a limited scale during the month. However, the industry operates with a low level of available work since most of the ongoing projects are in their final stages,” CBSL said.

New orders declined at a slower pace in October compared to the previous month. Many respondents had observed a gradual increase in sizable tender opportunities, mostly scheduled to be commenced in the first half of next year.

Employment remained contracted since the companies operate with limited staff under current circumstances. Further, quantity of purchases declined, yet at a slower pace during the month. Moreover, several respondents highlighted the pressure emanated from the increase in energy-related expenses. In the meantime, suppliers’ delivery time slightly lengthened during the month.