Bangladesh's Purchasing Managers’ Index (PMI) score rose by 6.0 points in October from September, reaching 55.7, marking a return to expansion after three months of consecutive contractions.
This improvement suggests a positive turnaround for the economy, with agriculture, construction, and the services sector showing growth for the first time in several months. Additionally, the manufacturing sector exhibited a faster rate of expansion.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) have jointly released the PMI report for September on Thursday (7 November), said a press release.
This initiative aims to provide timely and accurate insights into the country's economic health, helping businesses, investors, and policymakers make informed decisions.
Developed by MCCI and PEB with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM), the PMI is a first-of-its-kind indicator for the nation.
The agriculture sector, which had experienced three months of contraction, saw its first expansion in new business and business activity indexes. However, employment continued to contract at a faster pace, while the input costs index expanded more rapidly, and the order backlogs index contracted at a slower rate.
Similarly, the manufacturing sector showed accelerated growth with expansion in new orders, new exports, factory output, input purchases, and input prices. However, it recorded contraction in indexes such as finished goods, imports, employment, supplier deliveries, and order backlogs.
The construction sector returned to marginal expansion after three months of contraction. While there was a slower rate of contraction in construction activity, employment, and order backlogs, the new business index showed marginal contraction. The input costs index reported a faster expansion.
The services sector also resumed growth after three months of contraction, with business activity and order backlogs expanding for the first time. New business recorded slower expansion, and the input costs index saw faster growth, while the employment index experienced a slower contraction.
Despite the overall positive economic outlook, challenges persist for Bangladesh, including frequent protests, slow improvements in law and order, and a sluggish public administration sector.
