SL Purchasing Managers’ Index Survey - November 2017

The Manufacturing Sector PMI recorded 58.8 in November which is an increase of 4.0 index points compared to October 2017. This indicates that the Manufacturing activities expanded at a higher pace in November compared to October 2017. This was mainly driven by the New Orders and Production sub-indices owing to the increase in manufacturing of food, beverages and tobacco related activities in line with the seasonal demand. Further, Employment and Stock of Purchases sub-indices also expanded at a higher pace during the month compared to October 2017. Meanwhile, the Suppliers’ Delivery Time sub-index lengthened, albeit at a slower rate, compared to previous month. Overall, all the sub-indices of PMI recorded values above the neutral 50.0 threshold signalling an overall expansion in November 2017. Moreover, The Expectation for activities for next three months remained high with some moderation compared to the previous month.

The Services Sector PMI recorded 57.4 index points in November from 55.3 index points in October 2017. This indicates that the Services sector accelerated at a moderate pace in November 2017. This acceleration was supported by Business Activity, New Businesses and Employment sub-indices. Expectations for Activity for next 3 months decelerated while Backlogs of Work declined in November compared to October 2017. The expansion in Business Activity was mainly observed in Financial Services and Telecommunication sectors, reasons being expansion of service delivery channels and technology based improvements. Employment reached a four month high with companies gearing up with increased staff levels for the festival season and recruitment for previously opened positions. Prices Charged decelerated in November compared to October 2017 while Expected Labour Cost increased in November 2017 due to seasonal benefits such as bonuses, festival advances and encashment of unutilized leave for 2017.

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Published Date: 

Friday, December 15, 2017