Bangladesh May PMI recorded a faster expansion rate

The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) have jointly released the May 2025 Bangladesh Purchasing Managers' Index (PMI) report, marking a significant uptick in the country's economic momentum.

Published on 15 June, the PMI report shows a notable increase of 6.0 points from April, pushing the index to 58.9—indicating a faster pace of expansion. Developed by MCCI and PEB, with support from the UK Government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM), the PMI provides timely insights into Bangladesh's economic health for businesses, investors, and policymakers.

The rise in the May reading is primarily attributed to stronger performance in agriculture, manufacturing and services, while the construction sector saw no change from the previous month. The agriculture sector recorded its eighth straight month of expansion, with increased momentum across new business, business activity, employment, and input costs. The order backlog index also returned to an expansion. Manufacturing posted its ninth consecutive month of growth, showing faster expansion in most categories, although the order backlogs index continued to contract—albeit at a slower rate.

The construction sector held steady in its sixth month of expansion. While construction activity saw a faster rise, input cost growth slowed, and both new business and employment indexes slipped into contraction. However, order backlogs returned to expansion.

The services sector logged its eighth straight month of growth, supported by more substantial gains in new business and input costs. Business activity and order backlogs also reverted to expansion, though the employment index grew at a slower rate.
In the future business outlook, agriculture showed a faster expansion rate, while manufacturing, construction and services posted slower growth expectations.

Commenting on the findings, Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said, "The latest PMI readings indicate that the overall Bangladesh economy grew at a faster rate, riding on the export-led manufacturing buoyancy and an uptake in agriculture and its supply chain ahead of Eid. The construction sector, however, remains the only segment without any growth in expansion."