SL’s manufacturing and services expand in June amidst economic recovery
July 17, Colombo (LNW): Sri Lanka’s manufacturing and services sectors continued to expand in June, with expectations of a sustained recovery in the economy, according to a Purchasing Managers’ Index compiled by the central bank.
ri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 56.6 in June 2024, indicating an expansion in prdocuction . All sub-indices, except for employment, rose above the neutral threshold during the month, resulting in an overall increase in the index value.
“The expansion in New Orders and Production was mainly due to the growth in the manufacture of food and beverages sector,” a statement said.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 56.6 in June 2024, indicating an expansion in manufacturing activities.
All the sub-indices, except for employment, remained above the neutral threshold during the month.
The expansion in New Orders and Production was mainly due to the growth in the manufacture of food and beverages sector. Stock of Purchases also expanded, in line with the increase in New Orders and Production.
However, Employement remained contracted during the month, as the firms are still cautious about refilling the vacant positions.
Meanwhile, Suppliers’ Delivery Time further lengthened in June, mainly attributable to the congestion in the major shipping ports.
Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated a further expansion in services activities in June 2024 as reflected by the Business Activity Index, which recorded an index value of 63.5.
The expansion in Business Activities was driven by the improvements observed across most sectors. Business activities in the wholesale and retail trade grew due to Haj festive season.
Further, business activities in the transportation services, financial services and other personal services also experienced a considerable growth during the month.
However, business activities in the accommodation, food and beverages services remained at the same level as in the previous month in line with the sluggish tourist arrival during off-season.
New Businesses increased in June, particularly with the increases observed in financial services and other personal service activities. Employment increased in June due to new recruitments made by several companies. Meanwhile, Backlogs of Work continued to decline during the month.
