Sri Lanka manufacturing, services PMI expands in August
ECONOMYNEXT – Sri Lanka’s purchasing managers index (PMI) for manufacturing and services expanded in August 2016 with expectations for activities in the former indicating an improvement for the next three months, the central bank said.
The Manufacturing Sector PMI, based on a survey of large companies located in the Western province, increased to 53.5 in August, up 2.9 index points from July 2016, a statement said.
“The increase in August was fuelled by the improvements observed in New Orders, Employment and Production Indices,” it said.
All the sub-indices of manufacturing sector PMI, apart from stock of purchases which was unchanged, increased compared to the previous month.
“Notably, New Orders, Employment and Suppliers’ Delivery Time indices recovered from the contraction observed in July,” the statement said.
“Overall data points to an expansion where all the sub-indices are above the neutral 50.0 threshold. The expectations for activities indicate an improvement for the next three months.”
The Services Sector PMI increased to 61.2 in August from 57.8 in July 2016, indicating economic activities in the services sector expanded at a higher rate in August 2016 compared to the previous month.
“The increase in Services PMI was underpinned by increases in New Businesses, Business Activity, Employment and Expectations for Activity sub-indices. Backlogs of Work declined in August compared to the previous month,” the statement said.
“Decline in Backlogs of Work amidst rising New Businesses and Business Activity indicates increasing efficiency levels within the services sector and freeing up of capacity for elevated Expectation for Activity.”
The central bank said the prices charged, which is not taken into consideration in the PMI compilation, increased in August 2016 after two consecutive declines from its peak level in May 2016.
(COLOMBO, Sept 16, 2016)