📈 Sept PMI: Manufacturing Gains Momentum; Services Expansion Eases

• Both Manufacturing and Services sectors continued to expand in September, as per the CBSL's Purchasing Managers’ Index (PMI) data. • Manufacturing PMI rose slightly to 55.4 (up from 55.2 in August), indicating a faster pace of expansion. • Growth was mainly driven by New Orders and Production, largely attributed to the textiles and wearing apparel sector. • Stock of Purchases increased in preparation for the upcoming festive season. • A key concern: The Employment sub-index fell below the neutral threshold due to difficulties in retaining/attracting skilled workers. • Services PMI registered 58.7, showing accelerated expansion but at a slower pace compared to the 68.9 recorded in August. • Expansion was strongly supported by performance in wholesale and retail trade and improving financial services (underpinned by increased lending activity). • Employment in Services continued to increase to meet operational requirements. • Outlook for both sectors over the next three months remains positive, supported by the expectation of strong year-end seasonal demand and favourable macroeconomic conditions.