Bangladesh’s Purchasing Managers’ Index (PMI) increased by 6.5 points in November, reaching 62.2, signaling growth in key economic sectors, except construction.

PMI Report Overview

The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) released the November PMI report on December 8. The report highlights that the PMI provides critical insights into the country’s economic health, supporting businesses, investors, and policymakers in making informed decisions. MCCI and PEB developed the PMI with backing from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM).

Sector Performance

• Agriculture: The agriculture sector continued its expansion for the second consecutive month. It saw faster growth in new business and business activity. The employment index showed slower contraction, while order backlogs declined more sharply.
• Manufacturing: Manufacturing expanded for the third month in a row, with faster growth in new orders, exports, factory output, input purchases, and input prices. This month also recorded new growth in finished goods, imports, employment, and supplier deliveries. However, order backlogs declined at a slower pace.
• Construction: After a brief period of growth in October, the construction sector returned to contraction. Input costs and order backlogs decreased, but new business, construction activity, and employment expanded.
• Services: Services continued their expansion for the second month, with faster growth in new business, business activity, and order backlogs. The input cost index expanded at a slower pace, while employment showed improvement.

Future Outlook

Looking ahead, agriculture, construction, and services are expected to grow faster, while manufacturing will see slower growth.

Conclusion

The latest PMI readings indicate a gradual recovery for Bangladesh’s economy, following three months of contraction. Despite positive trends, the economy faces challenges from political uncertainties and disruptions caused by protests and industrial actions.

Source: The Business Standard