Seasonal dip in construction industry in April

Monday, 3 June 2024 02:19 - - {{hitsCtrl.values.hits}}

Following the seasonal pattern where activities across many sectors slowdown during the traditional New Year celebrations, Sri Lanka Purchasing Managers’ Index for Construction (PMI- Construction) decreased to an index value of 31.9 in April 2024.

“This indicates a contraction in construction activities compared to the previous month,” PMI- Construction compiler CBSL said.

As per the respondents, most construction sites were temporarily closed during the month due to the extended New Year holidays, leading to this month-on-month decline.

New orders decreased in April with the fewer working days. However, most respondents were confident that the increasing trend in tender opportunities will continue in the upcoming months. Moreover, the participatory firms widely highlighted the intense competition in the market. The employment and quantity of purchases declined during the month, in line with the decline in total activities and new orders.

Further, the decreasing trend of the overall price levels continued in April as well. Meanwhile, suppliers’ delivery time lengthened at a comparatively slower rate during the month.

The industry outlook for the next three months is positive, mainly due to the expected increase in new construction projects, CBSL added.