PMI signals growth in manufacturing and services in February

Tuesday, 18 March 2025 03:19 - - {{hitsCtrl.values.hits}}

The country’s manufacturing and services sectors in February have expanded as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank (CBSL) said.

The Manufacturing PMI recorded an index value of 56.8 in February 2025, indicating a continued expansion in manufacturing activities.

This expansion was attributable to positive contributions from all sub-indices.

In January, it expanded by 59 as opposed to 57.2 in December 2024. Most of the survey participants, particularly within the food and beverage manufacturing sector, are gearing up for the upcoming festive season, driving expansions in the New Orders and Production sub-indices.

In addition, Employment and Stock of Purchases also expanded, indicating proactive adjustments to accommodate growing demand.

However, Suppliers’ Delivery Time continued to lengthen during the month, reflecting the increased pressure on suppliers.

The outlook for manufacturing activities for the next three months remains positive, mainly due to the upcoming festive season.

Sri Lanka Purchasing Managers’ Index for Services (PMI –Services) recorded an index value of 56.5 in February 2025, indicating a slower expansion in services activities.

In January, the index value was 58.5 as opposed to 71.1 in December 2024.

The expansion in business activities was driven by improvements observed across most of the sectors.

Accordingly, business activities in the financial services continued to improve supported by increased lending activities.

Further, business activities related to wholesale and retail trade and education also showed improvements during the month.

Meanwhile, real estate, professional services, accommodation, food and beverage, insurance, and other personal services related business activities also indicated increases during the month.

The CBSL said New Businesses increased in February 2025, primarily due to expansions observed in the financial services, accommodation, food and beverage, education, other personal services, real estate, and transportation related activities.

Employment continued to increase amid recruitments across many companies in view of the festive season. Meanwhile, Backlogs of Work continued to decline at a higher rate in February 2025.

Expectations for business activities for the next three months continue to improve at a higher rate due to the upcoming festive season.

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