Bangladesh PMI surges to 62.8 in May as all major sectors record expansion

Bangladesh's Purchasing Managers' Index (PMI) jumped to 62.8 in May 2026, up from 54.6 in April, as all four major sectors of the economy recorded expansion for the first time in recent months.

The latest PMI, released today (8 June) by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), showed that stronger performances in manufacturing and services, alongside a rebound in construction and continued growth in agriculture, drove the overall expansion.

The manufacturing sector recorded the sharpest monthly increase, with its index climbing to 64.1 in May from 56.9 in April.

The growth was driven by increases in new orders, export orders, input purchases and employment.

Imports and order backlogs also returned to expansion during the month, although factory output grew at a slower pace and inventories of finished goods continued to contract.

The services sector expanded for the 20th consecutive month, with its index rising to 62.3 from 51.8 in April.

Business activity, employment and input costs increased at a faster pace, while new business also returned to expansion.

The construction sector returned to positive territory after contracting for three consecutive months.

Its index rose to 52.9 in May from 44.6 in April, supported by expansion in new business, construction activity and employment.

However, firms reported faster growth in input costs during the month.

Meanwhile, agriculture recorded its ninth consecutive month of expansion, although the sector's index edged down slightly to 70.0 from 70.7.

Business activity and employment strengthened further, but growth in new business and input costs slowed, while order backlogs contracted.

Despite the strong overall reading, businesses across sectors continued to report several challenges.

Respondents cited electricity and energy shortages, rising fuel prices, increasing labour costs and higher transportation expenses as key pressures affecting profit margins.

Several firms also expressed concern over the potential economic impact of ongoing geopolitical tensions in the Middle East, including risks of supply chain disruptions and weaker export demand.

"The May PMI shows that Bangladesh's economy moved onto a stronger expansionary path, with manufacturing, construction and services recording faster growth compared with April," said Dr M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh.

"Stronger domestic demand and increased business activity ahead of Eid appear to have supported broader-based expansion across major sectors," he added.

The Bangladesh PMI is compiled through monthly surveys of more than 500 private sector enterprises.

The index was developed jointly by MCCI and PEB with support from the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM).