Manufacturing, services PMI stay in expansion zone in September
Summary
The country’s manufacturing and services sectors in September have expanded, as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank of Sri Lanka (CBSL) said. The Manufacturing PMI registered an index value of 53 in September, remaining unchanged […]
The country’s manufacturing and services sectors in September have expanded, as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank of Sri Lanka (CBSL) said.
The Manufacturing PMI registered an index value of 53 in September, remaining unchanged compared to the previous month, indicating that manufacturing activities continued to expand at a similar pace during the month.
The CBSL said the expansion in New Orders and Production was largely attributed to positive developments in both the Food and Beverages and Textiles and Wearing Apparel manufacturing sectors.
Meanwhile, Employment continued to expand, albeit at a slower pace, in September.
However, the Stock of Purchases moderated towards the neutral threshold, indicating broadly unchanged inventory levels during the month. Further, Suppliers’ Delivery Time remained lengthened during the month.
The CBSL said the outlook for manufacturing activities over the next three months remains positive, driven largely by optimism on year-end seasonal demand.
The Services PMI registered an index value of 60.5 in September, indicating an expansion in services activities, but at a slower rate compared to 65.6 in August.
Business activity increased in September, reflecting improvements across several subsectors, led by Financial Services, with notable contributions from Education and Professional Services.
New Businesses increased in September, primarily driven by the expansion in the Financial Services sector, with positive contributions from the Insurance, Education, Professional, and Other Personal Services subsectors.
Employment increased in September, as firms across several sectors increased recruitment to meet operational needs and support business expansion. Meanwhile, Backlogs of Work declined, although at a slower rate compared to the previous month.
The CBSL said expectations for business activity over the next three months continued to improve, supported by favourable macroeconomic conditions, increased tourist arrivals, and the upcoming festive season. However, broader global uncertainties continued to pose risks to the outlook.
Daily FT