Manufacturing and services sectors in Sri Lanka record growth in October 2018 from a month earlier
The Central Bank of Sri Lanka has reportedly stated that the country’s manufacturing and service sectors have grown faster in October 2018 from a month earlier, outpacing global averages of the Purchasing Managers’ Index (PMI).
The October manufacturing sector PMI has grown to 58.2 points, up from 4.1 points in September, compared to 52.1 points in the global PMI, which was down 0.1 points, the local media has reported.
Index values of over 50 shows a growth.
“The improvement observed in manufacturing activities in October was mainly driven by the improvement in new orders and production, especially in manufacturing of food and beverages activities, led by the positive outlook with the seasonal demand,” the Central Bank has stated.
The new orders sub-index grew to 59 points, up 5 points from a month earlier, reports state
Production has grown to 61 points, up 7.5 points.
“Even though the employment in the manufacturing of food and beverages activities has improved with seasonal trend, overall employment slowed down,” the Central Bank has reportedly stated.
“This was mainly evident in manufacturing of textiles, wearing apparels, leather and related activities due to difficulties to find employees in the market.”
Meanwhile, the service sector PMI has grown 2.5 points to 55.5, while the global PMI read 53.4, up 0.5 points.
Business activities sub-index grew 6.1 points to 57.1, while new business has grown 3 points to 58.2 and expectations for activity grew 4 points to 63.6.
“The expansion in business activities was seen mainly across financial services and transportation and warehousing sub sectors,” the Central Bank has stated.
OSL take:
The growth recorded by the manufacturing and services sectors in October 2018 is indicative is the growth momentum experienced by Sri Lanka. Given the latest statistics recorded by the Central Bank of Sri Lanka, foreign businesses/investors could look at investment opportunities in the island nation.
| Article Code : | VBS/AT/20181126/Z_2 |