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Sunday September 19th, 2021
Business

Sri Lanka manufacturing, service start to recover in June 2021

ECONOMYNEXT – Sri Lanka’s manufacturing and services activities have begun to recover from a third wave of Coronavirus according a Purchasing Managers Index compiled by the central bank.

The Manufacturing PMI recovered to 50.4 in June from 42.1 in May when a new lockdown started.

“The manufacturing PMI recorded an index value of 50.4 in June 2021 with an increase of 8.3 index points from the previous month, mainly driven by the strong recovery seen in New Orders,” the statement said.

“All the other sub-indices, except Suppliers’ Delivery Time, edged up from the previous month.

“The New Orders, especially in the manufacture of food & beverages sector, increased significantly.

“The Production, Employment, and Stock of Purchases sub-indices, mainly related to the food & beverages sector, edged up compared to the previous month yet remained below the neutral threshold level, owing to the disturbances from the third wave of the pandemic.

“However, the textile & wearing apparel sector indicated a deterioration in June, as reflected from the further decline in New Orders, Employment, and Stock of Purchases sub-indices.”

The Services PMI recovered to 51.3 in June from 39.5 in May when a new lockdown started.

“This improvement was mainly driven by the increase in expectations for activity supported by the relaxation of travel restrictions,” the statement said.

“New businesses sub index improved in June 2021 compared to May 2021, particularly with the improvements observed in education and financial services sub-sectors. However, wholesale and retail trade, accommodation, food and beverage and other personal activities sub-sectors saw declines during the month.

“Business activities sub index improved in June in line with the relaxation of the travel restrictions towards the latter part of the month. Accordingly, insurance, education, professional services and transportation sub-sectors saw improvements during the month.

“Nevertheless, wholesale and retail trade, other personal activities, accommodation, food and beverage and real estate activities sub-sectors continued to decline with a dip in demand related to discretionary goods and services…”

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