ECONOMYNEXT – Sri Lanka’s purchasing managers index (PMI) for manufacturing expanded at a slower pace in October 2016 compared with the month before while the Services Sector PMI increased, the central bank said.
It said in a statement the manufacturing sector PMI stood at 56.5 in October compared to 57.7 in September 2016 with the deceleration indicating that manufacturing activities expanded at a “moderate pace” in October.
“The deceleration in October compared to September was mainly due to the moderated pace in which Production and New Orders sub-indices performed,” it said.
The Stock of Purchases sub-index increased significantly in October indicating a stack of stocks for the upcoming season while Suppliers’ Delivery Time increased marginally.
The Employment sub-index also decelerated compared to the previous month.
“Overall data points to an expansion where all the subindices are above the neutral 50.0 threshold. The expectations for activities indicate an improvement for the next three months,” the central bank said.
The Services Sector PMI increased to 59.3 index points in October from 57.7 index points in September 2016, indicating economic activities in Services expanded at a higher rate in October compared to the previous month.
“The increase in Services PMI was caused by increases in New Businesses, Business Activity, Employment and Expectations for Activity sub-indices,” the statement said.
“However, Backlogs of Work declined in October 2016 compared to the previous month. Prices Charged, which is not taken into consideration in PMI compilation process, increased at a higher rate in October 2016.”
(COLOMBO, Nov 15, 2016)