By: Staff Writer
August 18, Colombo (LNW): Sri Lanka’s manufacturing and services sectors continued to expand in July this year with expectations of a continued recovery in the economy, according to a Purchasing Managers’ Index compiled by the central bank.
The CBSL said expectations for business activities for the next three months continue to improve at a higher rate, supported by favourable macroeconomic conditions.
The country’s manufacturing and services sectors in July have expanded as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank said.
The Manufacturing PMI recorded an index value of 59.5 in July. In June, the value was 56.6. “All sub-indices contributed positively to this improvement,” the CBSL said.
It said the expansion in new orders was driven by the manufacture of the Textile and Apparel sector. “Production increased during the month, mainly due to improved performance in manufacture of the Food and Beverages and Textile and Apparel sectors,” it added.
In addition, employment turned positive in July, which was mainly attributable to the manufacture of the Textile and Apparel sector.
Stock of purchases also expanded in line with the increased demand for materials. However, suppliers’ delivery time further lengthened in July.
The CBSL said the expectations for manufacturing activities for the next three months remain positive, anticipating a continuous improvement in demand.
The PMI for Services indicated a further expansion in services activities in July 2024, as reflected by the Business Activity Index, which reached an index value of 71.1. In June, the index value was 63.5.
The CBSL said the expansion in business activities was driven by improvements observed across a majority of sectors. Business activities in the Transportation services grew mainly due to improvements observed in the Freight and Aviation sectors.
Further, business activities in the wholesale and retail trade and other personal services also experienced a considerable growth during the month.
Meanwhile, business activities in the Accommodation, Food and Beverage services, which had shown a subdued performance in previous months, experienced an improvement during the month due to the increase in tourist arrivals.
New businesses increased in July, particularly with the upsurges observed in financial services and transportation service activities. Employment declined in July despite a few new recruitments made by several companies.Meanwhile, backlogs of work continued to decline during the month.
