The services sector PMI in Sri Lanka increased to 55.8 in January of 2019 from 54.7 in December, pointing to the strongest growth in the services sector in five months. New business rose faster (57.7 from 55.4) and employment rebounded (57.4 from 44.1) due to recruitment to fill vacant positions, which were delayed in December. Respondents in education and postal and courier activities sub sectors cited that their new businesses expanded due to the intake of new batches and increase in gift deliveries for the new year. On the other hand, business activity slowed (56.7 from 64.5) and backlogs of work fell faster (42.9 from 47.2). Expectations for activity increased (64.4 from 62.4). Services Pmi in Sri Lanka averaged 58.20 from 2015 until 2019, reaching an all time high of 66.80 in May of 2015 and a record low of 52.60 in November of 2018.
Services Pmi in Sri Lanka is expected to be 56.80 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services Pmi in Sri Lanka to stand at 57.10 in 12 months time. In the long-term, the Sri Lanka Services PMI is projected to trend around 56.90 in 2020, according to our econometric models.