Construction sector sees uptick in February as per PMI

The construction sector is seeing an uptick in February as per the Purchasing Managers’ Index (PMI) for the industry.

Its compiler, the Central Bank, said the PMI – Construction indicates an expansion in construction activities in February 2024, as reflected by the Total Activity Index, which recorded an index value of 57.1. In January it was 52.9 and December it was 48.6.

CBSL said many firms attributed the growth in construction activities to the current conducive environment and the resumption of several temporarily suspended projects.

New Orders continued to increase for the second consecutive month, reflecting the improved demand conditions in the industry. The respondents mentioned that large-scale infrastructure projects, particularly foreign-funded ones, are also among the available tender opportunities. “However, employment remained contracted in February, yet at a slower rate than the previous month,” CBSL said.

It said several survey respondents cautioned about the shortage of skilled and experienced construction workers.

Further, Quantity of Purchases improved due to the increased pipeline projects. The price levels of construction materials denoted a downward adjustment during the month. According to CBSL Suppliers’ Delivery Time further lengthened in February.

“Most of the firms are optimistic about the next three months mainly because of the increased availability of projects,” CBSL added.