Manufacturing, services PMI pick up in June

Thursday, 17 July 2025 01:21 - - {{hitsCtrl.values.hits}}

Industry outlook for both sectors in next three months positive
Export-oriented manufacturers and service providers remain cautious on growing uncertainties in global trade

The country’s manufacturing and services sectors in June have expanded as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank of Sri Lanka (CBSL) said.

The Manufacturing PMI recorded an index value of 51.9 in June from 55.5 index points in May, indicating a continued expansion in manufacturing activities.

This expansion has remained above the neutral threshold during the month from all sub-indices, except for Employment.

Accordingly, the New Orders and Production sub-indices continued to grow during June. Further, Stock of Purchases also expanded, in line with the increase in New Orders and Production, although Employment contracted during the month.

Several respondents indicated a strategic move to hire only for essential positions and maintaining minimal raw material inventories, in response to heightened uncertainties in the global trade environment.

However, Suppliers’ Delivery Time further lengthened during the period.

The CBSL said the industry outlook for the next three months remains positive. However, respondents expressed their concerns over uncertainties surrounding US trade policies.

The Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) recorded an index value of 61.9 in June 2025 from 57 index points in May, indicating an accelerated expansion in services activities.

The expansion in business activities was driven by improvements observed across most of the sectors. Accordingly, business activities related to financial services continued to improve, driven by the increase in lending activities. Further, business activities in the professional services, insurance, transportation, other personal activities, and real estate sectors also registered positive developments during the month. Nevertheless, business activities in some other sectors appeared largely unchanged during the month.

The CBSL said New Businesses increased in June 2025, primarily due to expansions observed in the financial services sector.

Employment increased in June 2025 with recruitments across several companies. Meanwhile, Backlogs of Work remained unchanged compared to the previous month.

Expectations for Business Activities over the next three months continued to improve, supported by favourable macroeconomic conditions. However, some companies highlighted concerns over the implementation of taxes on the supply of services by a non-resident person through an electronic platform, and uncertainties related to US tariffs and developments in the Middle Eastern region.