Bangladesh's economy expands at slower pace in Feb: PMI
Agriculture, manufacturing PMI rise; construction, services decline
Bangladesh's Purchasing Managers' Index (PMI) in February dropped by 1.1 points to 64.6, indicating a slowdown in the pace of economic expansion compared to the previous month.
The pace of growth in agriculture and manufacturing increased from January, while it declined in the construction and service sectors.
The index, on a scale of 0 to 100, indicates economic expansion if the reading is above 50, while a reading below 50 signifies contraction, according to the Metropolitan Chamber of Commerce and Industry, Dhaka, and Policy Exchange Bangladesh.
The index is jointly published by these organisations with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management.
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However, all major sectors remained in expansion, albeit at varying speeds.
The agriculture sector recorded its fifth consecutive month of expansion at a faster pace. It posted accelerated expansion rates in the indexes for new business, business activity, input costs, and order backlogs. Meanwhile, the employment index showed a slower contraction.
The manufacturing sector marked its sixth consecutive month of expansion at a faster rate. It recorded stronger growth in the indexes for new orders, factory output, input purchases, and supplier deliveries.
However, the indexes for new exports, finished goods, imports, and employment expanded at a slower pace, while the order backlogs index contracted at a faster rate.
The construction sector experienced its third consecutive month of expansion, though at a slower pace. The indexes for new business and construction activity showed weaker growth, whereas the input costs index expanded more rapidly.
The employment index returned to expansion, while the order backlogs index contracted at a slower rate.
The services sector recorded its fifth consecutive month of expansion but at a slower rate. The indexes for new business, business activity, and employment grew at a weaker pace.
The order backlogs index returned to contraction, while the input costs index expanded at a faster rate.
Regarding the future business index, all key sectors – agriculture, manufacturing, construction, and services – posted slower expansion rates.
"Bangladesh's PMI readings indicate sustained expansion for the fifth month, driven by continued growth in exports and a seasonal uptick in agriculture, while construction and services recorded slower expansion," said M Mashrur Reaz, chairman and CEO of Policy Exchange.
"Business confidence remains weak due to sluggish demand, energy disruptions, and ongoing protests. Sustained recovery depends on improved law and order, political consensus on the election roadmap, and expedited implementation of priority reforms," he added.
