PMI – Construction rises to 66.2 in November

The Purchasing Managers’ Index for Construction (PMI – Construction) increased to 66.2 in November. 

This was reflected by the Total Activity Index, which is compiled by the Central Bank’s Statistics Department monthly.

According to the Statistics Department, most firms improved construction activity during the month, despite the weather-related disruptions towards the end of the same month. 

Moreover, the New Orders Index remained expanded in the same month as well. 

The Employment and Quantity of Purchases indices also further increased, indicating a continued level of optimism about the availability of construction projects. 

The Employment Index looks at the number of staff working for an organisation, while Quantity of Purchases looks into raw materials purchased and kept in storage for production purposes.

The Suppliers Delivery Time, which measures the time lag between order placement and delivery by the supplier, also remained lengthened in November. The survey to calculate the Total Activity Index targets the highest graded local construction companies registered in the Construction Industry Development Authority. 

It covers around 35 responses to capture month-on-month developments. 

Many survey respondents highlighted the increased availability of both private and government-funded projects during the month. 

Despite anticipated slowdown in December due to holidays and cyclone-related disruptions, the outlook for the next three months remains positive.

This is supported by anticipated favourable weather conditions and the launch of new projects this year, with post-Ditwah reconstruction efforts to provide additional momentum. 

In October, the PMI – Construction, as reflected by the Total Activity Index, recorded a value of 64.3. This high reading followed September’s peak 67.6 and a positive outlook for construction activities.

Moreover, the PMI also indicates expansions in the manufacturing and services sectors as well. 

The Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.5 in November last year, whereas the Purchasing Managers’ Index for Services (PMI – Services) recorded an index value of 50.5 in the same month.

(SD)