Sri Lanka Manufacturing and Services activities recover in June 2021
Sat, Jul 17, 2021, 09:55 am SL Time, ColomboPage News Desk, Sri Lanka.
July 17, Colombo: Both manufacturing and service sectors of Sri Lanka recovered during June from the adverse impacts of the third wave of COVID-19 pandemic, the Central Bank’s Purchasing Managers’ Index (PMI) Survey released Thursday showed.
Manufacturing activities recovered marginally during June 2021 recording a manufacturing PMI of 50.4 value of 50.4 in June 2021 with an increase of 8.3 index points from the previous month mainly driven by the strong recovery seen in New Orders.
All the other sub-indices, except Suppliers’ Delivery Time, edged up from the previous month. The New Orders, especially in the manufacture of food & beverages sector, increased significantly.
The Production, Employment, and Stock of Purchases sub-indices, mainly related to the food & beverages sector, edged up compared to the previous month yet remained below the neutral threshold level, owing to the disturbances from the third wave of the pandemic.
However, the textile & wearing apparel sector indicated a deterioration in June, as reflected from the further decline in New Orders, Employment, and Stock of Purchases sub-indices.
The Suppliers’ Delivery Time continued to lengthen in June 2021, yet at a slower pace, with the ease of travel restrictions in domestic front.
Expectations for manufacturing activities for the next three months significantly increased with the anticipation that the economic activities would normalize in the coming months supported by the rapid rollout of the COVID-19 vaccination across the country, particularly in the Western Province, and the easing of mobility restrictions.
Services PMI returned to the growth territory in June 2021, recording an index value of 51.3, after declining for two consecutive months.
This improvement was mainly driven by the increase in expectations for activity supported by the relaxation of travel restrictions.
New businesses sub index improved in June 2021 compared to May 2021, particularly with the improvements observed in education and financial services sub-sectors. However, wholesale and retail trade, accommodation, food and beverage and other personal activities subsectors saw declines during the month.
Expectations for business activities for the next three months picked up from May with the positive sentiments reinforced by the relaxation of travel restrictions, while some respondents expressed their concerns with related to import restrictions.