Bangladesh’s Purchasing Managers’ Index (PMI) fell by 3.2 points in August from July, settling at 58.3, indicating a slower pace of economic growth, according to a report released Sunday.
The latest PMI, jointly published by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB), showed that the country has maintained 11 consecutive months of economic growth though agriculture and construction sectors returned to contraction.
The agriculture sector contracted after 10 months of growth hit by weaker new business, reduced activity, and rising input costs.
Employment declined for the third consecutive month through at a slower pace.
The manufacturing sector continued to expand for the 12th month with growth in new orders, exports, production, and imports but employment and order backlogs fell for the third month in a row.
Construction activity also slipped back into contraction after a brief expansion in July.
Despite growth in new business and construction activity, the sector reported weaker backlogs and a fourth straight month of job losses.
Services remained a bright spot, marking its 11th month of expansion, though growth slowed. Business activity, new orders, and employment showed improvements, but backlogs of work contracted.
In terms of business outlook, future expectations weakened across agriculture, manufacturing, and construction, while the services sector showed more optimism.
“Overall, the Bangladesh economy continued to expand for 11 consecutive months but at a slower rate,” said Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.
“The agriculture and construction sectors recorded contractions due to prolonged monsoon disruptions while manufacturing and services slowed in line with the dip in export earnings in August.”
The PMI, developed by MCCI and Policy Exchange with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM), is the first of its kind in Bangladesh and aims to provide timely insights into the country’s economic health for businesses, investors, and policymakers.
