Bangladesh March PMI records slower expansion rate at 61.7
Services sector post faster expansion rate
The March reading of the Bangladesh Purchasing Managers' Index (PMI) declined by 2.9 points from the previous month to record a slower expansion rate at 61.7.
This latest PMI reading was attributed to a slower rate of expansion posted by the sectors of agriculture, manufacturing, and construction, whereas the services sector posted a faster expansion rate.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) today released the Bangladesh PMI March report.
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The PMI is an initiative that aims to offer timely and accurate insights into the country's economic health to help businesses, investors and policy makers make informed decisions.
It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from Singapore Institute of Purchasing & Materials Management (SIPMM), said a press release.
The agriculture sector posted a 6th month of expansion but at a slower rate. The sector posted slower expansion rates for the indexes of new business, business activity, input costs.
The order backlogs index reverted to a contraction. The employment index posted a faster contraction.
The manufacturing sector posted a 7th month of expansion but at a slower rate. The sector posted expansion readings for most indexes except for the order backlogs index, which posted a slower contraction rate.
The construction sector posted a 4th month of expansion but at a slower rate. The sector posted slower expansion readings for the indexes of new business and input costs, whereas the employment index posted a faster expansion rate.
The construction activity index reverted to a contraction, whereas the order backlogs index posted a slower contraction rate.
The services sector posted a 6th month of expansion and at a faster rate. The sector posted faster expansion rates for the indexes of business activity and employment, but slower expansion rates for the indexes of new business and input costs. The order backlogs index posted a faster contraction rate.
In terms of the future business index, faster expansion rates were recorded for the indexes of agriculture and construction, whereas the manufacturing index posted a slower expansion rate. The services index reverted to a contraction.
Commenting on the findings, M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said, "The latest PMI readings indicate slower expansion of the economy in March. Only the service sector managed to post faster expansion, driven by Eid festivity which is usually the peak business window for the retail sub sector. The future business index for the sector, however, posted a first-time contraction after 15 months of expansion."
