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Construction PMI Expands : PMI index rises to 59.5
The Sri Lanka Purchasing Managers’ Index for Construction (PMI) rose by 5 points to 59.5 in June 2024, the industry is mainly driven by projects funded by multilateral agencies, particularly related to road rehabilitation and water distribution.
Construction PMI sees seasonal drop : PMI drops to 31.9
The Sri Lanka Purchasing Managers’ Index for Construction (PMI) fell by 24 points to 31.9 in April 2024, as most construction sites were closed temporarily during the month due to the extended new year holidays, leading to this month-on-month decline
Construction Sector Expands: PMI Index Rises to 57.1
The Sri Lanka Purchasing Managers’ Index for Construction (PMI) surged by 4.2 points to 57.1 in February 2024, indicating robust growth driven by increased construction activities, with firms attributing it to a conducive environment and project resumptions.
New Orders Surge: PMI Index Reaches 58.6
February saw a consecutive increase in new orders, with the PMI index rising to 58.6, reflecting a significant uptick from 55.7 in January. This 2.9-point surge underscores improving demand conditions in the construction industry, driven by large-scale infrastructure projects and foreign-funded opportunities.
Employment Contracts: PMI Index at 45.7
Despite overall growth, employment in the construction sector contracted in February, with the PMI index for employment standing at 45.7, albeit at a slower rate than the previous month's 42.9. Concerns persist over the shortage of skilled workers, a sentiment echoed by survey respondents cautioning about the dearth of experienced labor.
Purchases Increase: PMI Index Jumps to 58.6
Respondents noted a significant improvement in the quantity of purchases, with the PMI index rising to 58.6 from 55.7 in January. This 2.9-point increase is attributed to a rise in pipeline projects, highlighting increased activity and investment in the sector.
Material Prices Dip: Downward Adjustment in February
The month witnessed a notable downward adjustment in construction material prices, offering some relief amid the sector's expansion. Respondents reported that price levels denoted a decline, further enhancing profitability and driving momentum in construction projects.
Last updated as of September 2024
Source: CBSL
GDP Growth Signals Economic Recovery
Sri Lanka's GDP surged to Rs. 3,329,583 million in Q1 2024 from Rs. 3,161,963 million in Q1 2023, marking a year-on-year growth of 5.3%. This increase reflects a robust recovery across various sectors, emphasizing the economy's resilience and adaptive response to previous economic challenges.
Industrial Sector Leads with Double-Digit Growth
The industrial sector showcased a significant rebound, expanding by 11.8% in the first quarter of 2024. This growth was primarily driven by notable performances in construction, which increased by 14.2%, and mining and quarrying, which rose by 18.3%. Manufacturing also saw a comprehensive upturn of 10.6%, further bolstering the industrial expansion.
Agricultural and Services Sectors Show Varied Performance
Agriculture experienced a modest growth of 1.1%, with notable increases in specific areas like cereal growth (22.4%) and freshwater fishing (18.1%). Conversely, the services sector grew by 2.6%, with significant contributions from accommodation and food services, which soared by 40.4%, and insurance activities, which climbed by 17.8%.
Economic Indicators Reflect Favorable Market Conditions
The positive shift in GDP is also mirrored in other economic indicators. Current price GDP rose by 8.4% to Rs. 7,959,032 million, with taxes less subsidies on products growing by 10.0%. The detailed sectoral growth underscores a broader economic enhancement, driven by lowered inflation and favorable policy adjustments facilitating market activities.
Last Updated August 2024
During the June to September quarter, agriculture sector expanded 3 percent in the quarter from the previous year, industries expanded 0.3 percent and services expanded 1.3 percent.
The input costs declined parallel to the favorable change in exchange rate and the demand for debts which were at a lower level, showed a positive indication in this quarter along with the reduction in interest rate,
Last Updated June 2024
Source: Department of Motor Traffic. Sri Lanka