Slow growth for construction sector in Aug.; optimism grows for future

Tuesday, 8 October 2024 00:02 - - {{hitsCtrl.values.hits}}

Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction) has expanded at a slower pace in August 2024 over the significantly higher level reached in the previous month, recording an index value of 51.4.

Index compiler, the Central Bank said, most of the other indices were also around the neutral threshold, indicating that the operations of the construction industry broadly remained unchanged compared to the previous month.

New orders stayed at the previous month’s level, as many survey respondents observed a sluggishness in awarding new projects. Quantity of purchases reported a contraction since many firms were cautious with their buying decisions due to the gradual decline in material prices and expectations of moderate activity levels ahead of the Presidential election. Employment also remained contracted in August, while suppliers’ delivery time lengthened.

“Most firms are optimistic that construction activities will accelerate after September,” the CBSL added.