Bangladesh’s business activity accelerated in April despite oil price shocks and global supply chain disruptions linked to the Middle East conflict.
Stronger agriculture and manufacturing growth outweighed a continued contraction in construction, according to an index jointly provided by the Metropolitan Chamber of Commerce and Industry (MCCI), Policy Exchange Bangladesh.
The country’s overall Purchasing Managers’ Index (PMI), a forward-looking indicator based on monthly surveys of more than 500 private sector firms, rose to 54.6 in April from 53.5 in March, indicating a faster pace of economic expansion, according to data released on Thursday.
A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction compared to the previous month.
The agriculture sector led the recovery, with its PMI surging to 70.7 from 51.6 a month earlier, marking the strongest expansion among all major sectors.
Manufacturing also staged a turnaround after slipping into contraction in March.
The sector’s PMI climbed to 56.9 in April from 49.7, driven by higher factory output, stronger input purchases and a rebound in export orders.
The recovery suggests industrial activity regained momentum despite rising external pressures on costs and trade flows.
Construction, however, remained the weakest segment of the economy.
The sector contracted for the third consecutive month, with its PMI falling sharply to 44.6 from 49.2 as new business, construction activity and employment continued to weaken.
The services sector remained in expansion territory for the 19th straight month, although growth slowed noticeably.
Its PMI declined to 51.8 in April from 56.4 in March as new business and order backlogs slipped back into contraction.
Policy Exchange Bangladesh Chairman and CEO M Masrur Reaz said the economy remained resilient despite rising uncertainty in global energy and supply markets.
He said the Middle East conflict increased oil prices, disrupted supply chains and added inflationary pressure across sectors.
However, future business indicators across agriculture, manufacturing, construction and services continued to point to stable and cautiously optimistic business sentiment, according to him.
