Bangladesh's economy slowly expanded for 11 straight months: PMI
The Purchasing Managers' Index (PMI) fell 3.2 points in August to 58.3 amid weaker performances across manufacturing and services, according to a report released by the MCCI and Policy Exchange Bangladesh.
Bangladesh's Purchasing Managers' Index (PMI) fell 3.2 points in August to 58.3, signalling a slower expansion, according to a report released by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), today (7 September).
Weaker performances across manufacturing and services drove the decline, while agriculture and construction slipped back into contraction, according to a press release.
"The latest PMI readings indicate that Bangladesh's economy has expanded for 11 consecutive months, but at a slower pace. Agriculture and construction were hit by prolonged monsoon disruptions, while manufacturing and services moderated, in line with weaker export earnings in August," the report noted.
Keep updated, follow The Business Standard's Google news channel
Agriculture ended a 10-month growth streak amid reduced new business, lower activity, and falling employment. Construction, after posting its first expansion in July, also reverted to contraction, with job losses continuing for a fourth month, reads the press release.
Manufacturing and services both marked their 12th and 11th consecutive months of expansion, respectively, though at slower rates. In manufacturing, new orders, exports, factory output and input purchases rose, but order backlogs and employment contracted. Services maintained growth in new business and activity, yet also faced contracting backlogs.
The Future Business Index showed softer expectations for agriculture, manufacturing, and construction, while services offered a brighter outlook with stronger confidence. Respondents cited political instability, seasonal slowdown and rising costs as key drags on activity, although some sectors benefited from past orders and ongoing projects.
The PMI, developed jointly by MCCI and PEB with support from the UK Government and technical expertise from the Singapore Institute of Purchasing & Materials Management (SIPMM), provides timely insights into the country's economic health to guide businesses, investors, and policymakers.
