Bangladesh’s PMI rises to 54.6 in April on stronger agriculture, manufacturing

Bangladesh's overall Purchasing Managers' Index (PMI) score in April saw an increase of 1.1 points from March to reach 54.6.  

The PMI data of April was released by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) on Thursday (7 May).

The increase indicates a faster pace of expansion compared to the previous month. The improvement was primarily driven by stronger growth in the agriculture sector, while the manufacturing sector returned to expansion. In contrast, the services sector recorded slower growth, and the construction sector recorded a sharper contraction, reads the report.

The agriculture sector registered its eighth consecutive month of expansion, with growth accelerating. Stronger growth was recorded in business activity, input costs, and order backlogs, while both new business and employment returned to expansion.

The manufacturing sector rebounded into expansion following a contraction in the previous month, adds the report.

The PMI report says, the recovery was supported by stronger growth in factory output, input purchases, and input prices. New orders, new exports, and employment also returned to expansion. However, contractions persisted in finished goods and imports, albeit at a slower pace, while supplier deliveries and order backlogs reverted to contraction.

The construction sector recorded its third month of contraction, with the pace of decline accelerating. New business and construction activity remained in contraction, and employment also declined. Meanwhile, input costs and order backlogs continued to expand, but at a slower rate.

The services sector expanded for the 19th consecutive month, though at a slower pace. Growth was recorded in business activity, employment, and input costs, while new business and order backlogs reverted to contraction.

Looking ahead, the future business index indicates faster expansion across all key sectors, namely agriculture, manufacturing, construction, and services, reflecting sustained business optimism.

Respondents across Bangladesh's major economic sectors reported that business operations during April 2026 were significantly affected by persistent electricity and fuel shortages, rising raw material and transportation costs, and broader global uncertainties linked to the ongoing Middle East conflict.

Many firms noted disruptions in production due to power outages, reduced working hours, and operational inefficiencies, while higher fuel and logistics costs further increased overall production expenses. Several respondents also highlighted that despite sharply rising operating costs, market conditions remained weak, limiting their ability to increase product prices accordingly and thereby compressing profit margins.

Weather-related disruptions and seasonal adjustments ahead of Eid-ul-Azha were also cited as factors affecting production and sales expectations. Nevertheless, some businesses remained cautiously optimistic, expressing hope that production and business activities would improve in the coming months if the energy situation and overall economic conditions stabilise. 

PEB Chairman and CEO M Masrur Reaz said, "The April PMI shows that Bangladesh's economy remained on an expansionary path, with manufacturing, agriculture, and services recording growth while there is a sharp contraction in construction. Although the Middle East conflict has raised oil prices, disrupted supply chains, and increased inflationary pressures, strong future business indicators across all sectors suggest that short-term business confidence remains stable and cautiously optimistic."