Industrial activity expands in October

The Index of Industrial Production (IIP) which measures the activity in the country’s manufacturing sector, expanded to 104.3 this October from 101.6 in September.
The October performance was the 3rd highest this year, following 108.7 recorded in March and 106.1 recorded in June.
IIP data is available faster than other indices, and includes a breakdown of all industrial activities, which helps in making future decisions faster. The year 2015 has been given an index value of 100.
Manufacture of food products, contributing 35.2 percent to industrial value addition in Sri Lanka, remained unchanged in October compared to September at 100.5, second only to 97.9 recorded in April amidst a year of continuous inclement weather which hurt the country’s agriculture sector.
Despite apparel exports—Sri Lanka’s leading export product—witnessing just a 0.3 percent year-on-year increase this October, and a 1.6 percent growth compared to September due to adverse global trade conditions, the manufacture of wearing apparel segment with a contribution of 19.8 percent increased to 106.6 from 103.7 in September.
The manufacture of non-metallic mineral products, such as cement, glass and ceramics, amounting to 7.8 percent industrial value addition, expanded to 107 from 104.8 in September, continuing momentum seen in recent months as the government decided to restart halted infrastructure projects.

With contribution of 7.4 percent, the manufacture of coke and refined petroleum products continued its rally, up to 98 from 96.7 in September, after the segment was recorded at 95.9 in August.
Manufacture of rubber and plastic products, weighted at 5.7 percent of industrial value addition, increased to 105.8 in October from 100.4 a month earlier.
 The IIP during the 3rd quarter of 2016 had been 103, up from 101.1 during the 2nd quarter, after the first quarter recorded an index value of 104.8.