PMI points to uptick in manufacturing and services in November

Tuesday, 17 December 2024 02:20 - - {{hitsCtrl.values.hits}}

The country’s manufacturing and services sector in November showed strong upturn, judging by the Purchasing Managers’ Index (PMI).

The manufacturing PMI recorded an index value of 53.3 in November 2024, indicating an expansion in manufacturing activities on a month-on-month basis, with positive contributions from all the sub-indices.

PMI compiler, the Central Bank of Sri Lanka (CBSL), said the new Orders sub-index expanded during the month, primarily driven by the textile and wearing apparel sector. “The expansion in the Production sub-index was mainly attributable to the food and beverages sector,” the CBSL said.

Moreover, the Employment and Stock of Purchases sub-indices remained expanded during the month, aligning with the New Orders and Production sub-indices. Meanwhile, Suppliers’ Delivery Time remained lengthened during the month. “The outlook for manufacturing activities for the next three months remains positive,” the CBSL said, whilst adding that however, some manufacturers, especially in the food sector, are concerned about the limited supply of several key raw materials.

The CBSL also said the services PMI indicated a further expansion in services activities in November 2024 as reflected by the Business Activity Index, which recorded an index value of 60.5. It added that the expansion in business activities was driven by improvements observed across most of the sectors.

Accordingly, business activities in the financial services sector experienced a significant improvement amid increased lending activities.

“Business activities in accommodation, food and beverage also showed a considerable improvement due to the increase in tourist arrivals,” the CBSL said.

Meanwhile, wholesale and retail trade business activities also increased ahead of the festive season, despite the adverse impact of unfavourable weather on sales.

“New Businesses increased in November 2024, primarily due to considerable expansions in the financial services and accommodation, food and beverage activities,” it added.

Employment increased amid recruitments made to accommodate growing economic activities with increased tourist arrivals and the festive season, whereas Backlogs of Work continued to decline in November 2024.

“Expectations for business activities for the following three months continued to improve at a higher rate, driven by the ongoing tourist season and the upcoming festive season,” the CBSL added.