The Manufacturing PMI in Sri Lanka went up to 58.2 in October 2018 from 54.1 in the previous month, as higher seasonal demand led to an improvement in new orders (59 from 53 in September) and production (61 from 53.5), mainly in manufacturing of food & beverages. Additionally, stock of purchases widened (61 from 56), amid an increase in production of furniture. On the other hand, employment growth slowed (55.0 from 55.5) in October, mainly in manufacturing of textiles, wearing apparels, leather; and the suppliers’ delivery time lengthened at the same pace as in the prior month, due to a shortage of raw materials and the expectation the rupee will stabilize. In terms of inflation, input costs continued to rise due to the rupee depreciation. Manufacturing Pmi in Sri Lanka averaged 55.91 from 2015 until 2018, 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 55.90 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 54.80 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.