Sri Lanka Purchasing Managers’ Index for both Manufacturing and Services recorded an index value of 53.3 in November 2024. This indicates an expansion in manufacturing activities on a month-on-month basis, with positive contributions from all the sub-indices.
New Orders sub-index expanded during the month, primarily driven by the textile & wearing apparel sector. Further, the expansion in the Production sub-index was mainly attributable to the food & beverages sector. Moreover, Employment and Stock of Purchases sub-indices remained expanded during the month, aligning with the New Orders and Production sub-indices. The outlook for manufacturing activities for the next three months remains positive.
However, some manufacturers, especially in the food sector, are concerned about the limited supply of several key raw materials. Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated a further expansion in services activities in November 2024 as reflected by the Business Activity Index, which recorded an index value of 60.5. The expansion in Business Activities was driven by the improvements observed across most of the sectors. Accordingly, business activities in the financial services experienced a significant improvement amid increased lending activities.
Further, business activities in accommodation, food and beverage also showed a considerable improvement due to the increase in tourist arrivals. Meanwhile, wholesale and retail trade business activities also increased ahead of the festive season, despite the adverse impact of unfavourable weather on sales.
New Businesses increased in November 2024, primarily due to considerable expansions in the financial services and accommodation, food and beverage activities. Employment increased amid recruitments made to accommodate growing economic activities with increased tourist arrivals and festive season, whereas Backlogs of Work continued to decline in November 2024.
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