Construction sector sees activities expand at slower pace in November

• Expectations for next 3 months are positive.

Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction) expanded in November 2024, albeit at a slower pace, recording a total activity index value of 51.4. 

As per the report released by the Central Bank, several respondents mentioned that the severe weather conditions that prevailed during the month somewhat disrupted their scheduled work. 

In the PMI, an activity is separated between an expansion and a contraction at an index value of 50.0.

Many survey respondents highlighted a slowdown in the tender evaluation process of construction projects towards the end of the year, leading to a decline in the New Orders index in November. 

“Firms remain cautious about expanding their workforce, as reflected by the continuous decline in the Employment index,” the Central Bank said. 

The Quantity of Purchases index was recorded at the neutral threshold in November, indicating that the material purchases stayed at a similar level as in the previous month. 

Meanwhile, Suppliers’ Delivery Time lengthened in November.

The expectations for the next three months are positive, as most firms are optimistic about the future availability of projects from January and favorable weather conditions. 

Source: Daily Mirror