Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.6, indicating an expansion in manufacturing activities.
This improvement was attributable to the increases observed in all
sub-indices.
The expansion in New Orders and Production was largely driven by the manufacture of textiles & apparel sector. However, New Orders and Production in the manufacture of food & beverages sector decreased on a month-on-month basis due to the decline in demand with the end of December festival season.
Meanwhile, Employment and Stock of Purchases expanded during the month in line with the New Orders and Production. Further, Suppliers' Delivery Time lengthened at a higher rate in January, mainly due to shipping disruptions in the Red Sea.
Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated an expansion in services activities in January 2024 as reflected by the Business Activity which recorded an index value of 60.1.
The continued expansion in Business Activities was driven by the significant improvements observed in other personal service activities, and accommodation, food and beverage sub-sectors amid tourist arrivals surpassing 200,000 for the second consecutive month.
Meanwhile, financial services also improved further in line with the reductions in market interest rates. Nevertheless, amendments to VAT and the end of the festive season adversely affected the wholesale and retail trade sub-sector during the month.
New Businesses increased in January, particularly with the increases
observed in financial services, other personal service activities and
professional services sub-sectors.
Employment fell despite new recruitments made by several companies. Meanwhile, Backlogs of Work continued to decline during January.