Sri Lanka manufacturing activities decrease in Dec 2018

Jan 19, 2019 (LBO) - Manufacturing activities increased at a slower rate in December compared to November mainly driven by the slowdown in employment and production, especially in manufacturing of textiles, wearing apparels, leather and related activities, the Central Bank said. "A significant decline in employment was experienced as some employees moved to seasonal jobs for better salaries. This partly impacted on decrease in production," the bank added issuing a statement. However, new orders increased mainly driven by the manufacturing of food and beverages activities with the continued festival season demand. Meanwhile, stock of purchases indicates an increase due to intended accumulation of stocks to fulfil the future requirements anticipating supply disruptions due to upcoming Chinese new year festival. In line with this, suppliers’ delivery time also lengthened. All the sub-indices of PMI Manufacturing except employment recorded values above the neutral 50.0 threshold signalling an overall expansion in December yet at a slower pace compared to November 2018. All the sub-indices of PMI Manufacturing except employment recorded values above the neutral 50 threshold signaling an overall expansion in December yet at a slower pace compared to November 2018. Services sector growth accelerated in December 2018, underpinned by a strong upturn in Business Activities, Expectations for Activities and New Businesses. Business Activities sub index reached a ten-month high in December as wholesale & retail trade and accommodation, food & beverage sub sectors posted a strong growth due to the festive season and peak season for tourism.