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Monday June 27th, 2022

Sri Lanka manufacturing PMI up in May, services continue down

ECONOMYNEXT – Sri Lanka’s manufacturing Purchasing Managers’ Index recovered in May from the April holiday month, while services continued fall with wholesale and retail trade, restaurants, hotels declining, the central bank said.

The manufacturing PMI improved to above 50.3 from 36.4 with employment recovering and also an increase in supplier’s delivery time.

“Even though the lengthening of Suppliers’ Delivery Time generally reflects the expansion in the manufacturing activities, in this instance it was primarily due to supply side impediments arising from clearance delays of imported goods and fuel shortage,” the central bank which compiles the index said.

“Moreover, Employment edged up during the month, particularly in the manufacture of textiles & apparel sector, partly due to cross-industry employee movements.”

The Services PMI fell for the second month to 42.4 in May from 43.8 in April.

“New Businesses declined further in May 2022 compared to April 2022, particularly with the decreases observed in accommodation, food and beverage, wholesale and retail trade, real estate, and education sub-sectors,” the statement said.

“Decline observed in Business Activities in May was mainly due to supply-side constraints including prolonged power outages and energy shortage.

“In addition, subdued demand attributable to rising prices and uncertainties in the country also contributed to the decline in business activities.

“Meanwhile, the civil unrest occurred at the beginning of the month also had a negative effect on the business activities.

“Accordingly, wholesale and retail trade, other personal activities and transportation sub-sectors recorded major declines during the month. In addition, business activities of accommodation, food and beverage sub-sector was also affected by the continued drop in tourist arrivals .” (Colombo/June16/2022)

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