The Manufacturing PMI in Sri Lanka rose to 54.4 in January of 2019 from 53.7 in December, pointing to the strongest growth in factory activity in three months. Production rose faster (55.5 from 51.5) and employment rebounded (52.5 from 46.5), especially in manufacturing of textiles, wearing apparels, leather and related activities. A significant improvement in employment was experienced with the recruitment of new employees to fill vacancies. On the other hand, new orders slowed (54 from 57) with the end of the festive seasonal demand; stocks of purchases also eased (55.5 from 60.5); and suppliers’ delivery time lengthened (55 from 55.5) slightly due to logistical issues. Manufacturing Pmi in Sri Lanka averaged 55.79 from 2015 until 2019, reaching an all time high of 67.30 in May of 2015 and a record low of 41.60 in April of 2016.
Manufacturing Pmi in Sri Lanka is expected to be 56.20 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing Pmi in Sri Lanka to stand at 57.70 in 12 months time. In the long-term, the Sri Lanka Manufacturing PMI is projected to trend around 58.90 in 2020, according to our econometric models.