Sri Lanka manufacturing PMI recovers in June
ECONOMYNEXT – Sri Lanka’s purchasing managers index (PMI) for manufacturing recovered in June 2016 after contracting in the two previous months partly owing to floods caused by heavy rains, the central bank said.
“The expectations for activities also indicated an improvement for the next three months,” a statement said.
The Manufacturing PMI in June 2016 was 55.1 index points, an increase of 7.2 index points from May 2016.
But on a year-on-year basis, the PMI index saw a marginal drop of 2.4 index points compared to June 2015.
The June improvement was bolstered by the significant increase observed in Production and New Orders Indices, the central bank said.
All the Sub-indices of PMI, apart from Suppliers’ Delivery Time, increased compared to the previous month.
“Overall data points to an expansion where all the sub-indices apart from the Employment Index are above the neutral 50.0 threshold,” the statement said.
A PMI index above 50 indicates an expansion on month-on-month basis while an index below 50 indicates a drop in activity.
The Services Sector PMI for June was 56.3 index points, compared to 58.1 index points in May 2016, indicating that economic activities continued its expansion, albeit at a slower rate compared to May 2016.
On year-on-year basis PMI declined by 8.7 index points in June 2016.
The services business activity sub-index increased marginally in June compared to May 2016. Prices charged decelerated in June compared to month-on-month increase recorded in May 2016.
The survey sampling frame was based on a list of large companies located in the Western province.
(COLOMBO, July 15, 2016)