Sri Lanka manufacturing, services PMI expand in November
ECONOMYNEXT – Sri Lanka’s purchasing managers index (PMI) for manufacturing and services expanded in November 2016, driven by employment and production, with expectations for manufacturing indicating an improvement for the next three months, the central bank said.
The Manufacturing Sector PMI was 58.4 in November, an increase of 1.9 index points from October 2016 indicating that the manufacturing activities expanded in November compared to October, a statement said.
“This was mainly due to the higher pace in which Employment and Production sub-indices expanded during the month. The New Orders sub-index also increased during the month,” it said.
The Stock of Purchases sub-index decelerated in November indicating a usage of stocks for the upcoming season while Suppliers’ Delivery Time lengthened.
“Overall data points to an expansion where all the sub-indices are above the neutral 50.0 threshold. The expectations for activities indicated an improvement for the next three months,” the central bank said.
The Services Sector PMI increased to 59.7 index points in November from 59.3 index points in October 2016.
“The increase in PMI over the last month’s value indicates that economic activities in the Services sector continued to expand in November 2016 in comparison to the previous month,” the central bank said.
“The increase in Services PMI was driven by expansion in Employment and Expectations for Activity sub-indices.”
New Businesses and Business Activity sub-indices decelerated in November 2016 compared to previous month but Backlogs of Work declined in November albeit at slower rate than October 2016.
Prices Charged, which is not taken into consideration in PMI compilation process, increased at a higher rate in November 2016.
(COLOMBO, Dec 15, 2016)