Continued expansion in most sectors yet construction back to contraction in Dec: PMI
Data showed continued expansion in agriculture, manufacturing, and services, while the construction sector returned to marginal contraction
Bangladesh's economic health expanded at a slightly faster pace in December last year, with the Purchasing Managers' Index (PMI) rising to 54.2, up 0.2 points from November.
Data showed continued expansion in agriculture, manufacturing, and services, while the construction sector returned to marginal contraction, according to a press release issued today (7 January) by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB).
According to the statement, the agriculture sector grew for the fourth consecutive month, supported by higher new business, business activity, employment, and input costs, despite a faster contraction in order backlogs.
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Manufacturing expanded for the 16th month, driven by growth in new orders, exports, output, input purchases, and employment. The finished goods index returned to expansion, while order backlogs contracted at a slower pace.
The construction sector, however, slipped back into marginal contraction, with new business declining faster, while growth in construction activity and employment remained limited. Order backlogs continued to shrink for the fifth consecutive month.
The services sector expanded for the 15th month, with employment and input cost indices rising, even as new business, overall activity, and order backlogs contracted.
PMI is a globally recognised economic indicator that surveys purchasing managers to track business conditions, providing timely insight into economic trends ahead of official GDP data.
"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance. Manufacturing sector experienced second straight month of slowdown, while the construction sector reverted to contraction," said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.
In terms of the future business index, slower expansion rates were recorded for all the key indexes of agriculture, manufacturing, construction, and services.
"The future business index however remained in expansion across all key sectors of the economy, suggesting sustained optimism and continued growth momentum post-elections," said Reaz.
