ECONOMYNEXT – Sri Lanka’s construction sector rebounded in October registering an index value of 54.3, from 48.6 in September, following the resolution of election-related uncertainties, according to a Purchasing Managers Index compiled by the central bank.
“Many respondents mentioned that the operations in construction projects regained momentum in October, following the resolution of election-related uncertainties,” the statement said.
All the sub-indices, except for employment, remained above the neutral threshold in October.
Employment decreased on a month-on-month basis in October. “Firms remain cautious in their recruitment strategies, as evidenced by the persistent decline in the Employment index.”
New orders index continued to increase, up at 54.3 in October from 52.9 in September, reflecting the sustained availability of construction work.
“Many respondents stated that private investors are increasingly showing their interest in projects due to favourable market conditions, particularly with the decline in construction material prices.”
Quantity of Purchases index turned positive during the month, 51.4 in October from 44.3 in September, aligning with the improved activity levels.
Suppliers’ Delivery Time further lengthened during the month, registering 51.5 in October from 51.4 in September.
The outlook for construction activities for the next three months remains positive, according to the statement, mainly due to the increase in project availability.
Sri Lanka’s central bank has provided stability for the country with a stable exchange rate and largely deflationary policy. (Colombo/Nov29/2024)