PMI hits 57.8 as manufacturing posts strongest gain in months on export rebound
Manufacturing led the recovery, with its PMI surging 16.6 points to 65.4, while agriculture and services also remained in expansion.
Bangladesh's Purchasing Managers' Index rose sharply in July, driven by the strongest manufacturing performance in months and the highest export earnings in a year, a business survey showed today (9 August).
The composite PMI, compiled by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, jumped 4.9 points to 57.8 in July from 52.9 in June, well above the 50-point threshold separating growth from contraction.
Manufacturing led the recovery, surging 16.6 points to 65.4, its strongest reading in the survey period, with expansion recorded across new orders, exports, output, employment, imports and supplier deliveries simultaneously.
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"The July PMI signals broad-based strengthening of Bangladesh's economy, led by a sharp manufacturing rebound and continued expansion in agriculture and services," said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh. "The manufacturing recovery coincided with the highest monthly export earnings in 12 months."
The services sector expanded for a 22nd consecutive month, rising 1.4 points to 56.0, while agriculture recorded its 11th straight month of expansion, though growth moderated by 9.6 points to 55.2.
Construction remained in contraction for a second consecutive month, with its PMI standing at 49.3. The reading, however, improved by 9.1 points from June's 40.2, which was its weakest point in the survey period.
Masrur attributed the improvement partly to "improved foreign-exchange conditions" and businesses' expectations of a more supportive environment following the FY2026-27 budget, which included deregulation measures announced last month.
The Future Business Index showed strong expansion across all four sectors, indicating that purchasing managers expect business conditions to improve further in the coming months.
Order backlogs, however, remained in contraction across multiple sectors, suggesting that the pipeline of future work remains thin despite the near-term improvement.
Bangladesh is the world's second-largest garment exporter. Its economy has faced four years of inflation above 9% and historically low private credit growth, making the July PMI improvement a closely watched indicator of whether an economic recovery is taking hold.
The PMI survey was developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management.
