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Wednesday December 8th, 2021
Business

Sri Lanka manufacturing, some services recover in Sept 2021: PMI

ECONOMYNEXT – Sri Lanka’s manufacturing has recovered in September 2021 from a slump in the previous month, while services also showed an improvement, despite Coronavirus lockdowns, a Purchasing Managers’ Index showed.

“Manufacturing PMI bounced back to 54.3 in September 2021, increasing by 9.2 index points compared to August 2021,” the central bank which compiles the index said.

“This increase was mainly attributable to the significant improvements observed in New Orders and Employment sub-indices.

The increase in New Orders, particularly in the manufacture of textile & wearing apparel and food & beverages sectors, have contributed considerably to the overall improvement in the PMI.

Some respondents in the textile & wearing apparel sector mentioned that they received a large number of export orders in September with the normalisation of the economies in the major export destinations.

“Employment has also increased, especially in the manufacture of textile & wearing apparel sector, where new recruitments resumed with the tapering off of the pandemic situation.”

The Services PMI went above 50 recording 52.2 in September 2021 from 66.2 in August, though retail and wholesale trade was hit from lockdowns.

“This was underpinned by the increases in New Businesses, Backlogs of Work and Expectations for Activity sub-indices.

“New Businesses increased in September compared to the previous month mainly with the improvements observed in transportation, solely related to freight forwarding, financial services, education and telecommunication sub-sectors.

“Business activities in transportation, solely driven by freight forwarding, education and insurance sub-sectors showed improvements during September.

“However, business activities in other personal activities, wholesale and retail trade, human health activities and accommodation, food and beverage sub-sectors were largely affected due to the quarantine curfew imposed throughout the month.

“As such, Business Activity sub-index edged up in September, yet continued to remain below the threshold level.” (Colombo/Oct18/2021)

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