Downside outlook for construction in next three months

Saturday, 3 February 2024 01:53 - - {{hitsCtrl.values.hits}}

The construction industry’s outlook for the next three months is on the downside with the lack of upcoming projects and the impact of tax revisions on price levels, as per the sector’s Purchasing Managers Index.

Construction PMI compiler, the Central Bank said December saw a slower contraction in construction activities compared to November. The Total Activity Index value was 48.6.

CBSL said the respondents mentioned that the limited availability of project work continued to hamper the activity levels.

New orders declined in December, broadly at a similar pace compared to the previous month. Many respondents mentioned that currently they are heavily relying on foreign-funded projects.

Employment too contracted mainly due to the layoffs in line with the project completions. Further, quantity of purchases remained contracted during the month since the ongoing work and the upcoming projects continued to decline. Suppliers’ Delivery Time remained lengthened in December, CBSL added.