Bangladesh’s Purchasing Managers’ Index (PMI) declined by 1.1 points in February, settling at 64.6, marking a slowdown in the country’s overall economic expansion.
Released by MCCI and Policy Exchange Bangladesh (PEB) on 9 March 2025, the report shows that the decline was primarily attributed to weaker growth in the construction and services sectors, while agriculture and manufacturing continued to expand at a faster pace.
The agriculture sector recorded its fifth consecutive month of expansion, with accelerated growth across key indicators such as new business, business activity, input costs, and order backlogs.
The employment index in this sector, though still contracting, showed signs of improvement.
Similarly, the manufacturing sector registered a sixth month of expansion, driven by stronger performance in new orders, factory output, input purchases, and supplier deliveries.
However, the sector faced slower expansion in exports, finished goods, imports, and employment, while the order backlog index contracted at a faster rate.
In contrast, the construction sector posted its third consecutive month of expansion but at a reduced pace. Slower growth was observed in new business and construction activity, while input costs rose at a faster rate.
The employment index returned to an expansionary trend, and order backlogs contracted at a slower rate.
The services sector continued its expansion for the fifth month but at a diminished rate, with sluggish growth in new business, business activity, and employment.
The order backlog index slipped into contraction, while input costs rose at an accelerated pace.
Looking ahead, all key sectors—agriculture, manufacturing, construction, and services—posted slower expansion rates in the future business index, reflecting a cautious outlook.
Commenting on the findings, Policy Exchange Chairman and CEO M Masrur Reaz noted, “Bangladesh's PMI readings indicate sustained expansion for the fifth month, driven by continued growth in exports and a seasonal uptick in agriculture, while construction and services recorded slower expansion. Business confidence remains weak due to sluggish demand, energy disruptions, and continued protests. Sustained recovery depends on improved law and order, political consensus on the election roadmap, and expedited implementation of priority reforms.”
