Manufacturing and services activities slow down in January

Sri Lanka’s manufacturing and services sectors lost some momentum in January compared to the previous month though both sectors recorded index values over 50 percent, still signalling an expansion. 
According to the Purchasing Managers’ Index (PMI) calculated by the Central Bank, the manufacturing sector recorded an index value of 56.2 in January, a 2.1 index point decrease, compared to December 2016.
The services sector PMI recorded 57.5 index points in January from 59.8 percent index points in December 2016.
The PMI is an important statistical model to gauge the health of an economy. 

“The deceleration in PMI indicates that the manufacturing activities expanded at a moderate pace in January 2017 largely attributable to post seasonal realignment of business plans ahead as reflected in Production and New Orders sub-indices,” the Central Bank said. 
The Central Bank said the services sector PMI decline was caused by the decelerations in New Businesses and Business Activity sub-indices and the decline in Backlogs of Work sub-index.