Bangladesh’s Purchasing Managers’ Index (PMI) for August declined to 58.3, down 3.2 points from July, indicating a slowdown in the country’s economic growth, according to a report released on September 7, 2025, by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB).
“The latest PMI readings show that Bangladesh’s economy has continued to expand for 11 consecutive months, but at a slower pace,” said Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh. “Agriculture and construction sectors faced contraction due to prolonged monsoon disruptions, while manufacturing and services sectors saw slower expansion, reflected in a dip in export earnings in August.”
The PMI, a key leading indicator of economic trends and business sentiment, tracks business activity across manufacturing, services, agriculture, and construction. A reading above 50 signals expansion in business activities, while 50 indicates no change, and below 50 reflects contraction.
The August report showed slower growth in manufacturing and services, while agriculture and construction slipped into contraction after months of expansion. The agriculture sector contracted for the first time in ten months, with its PMI falling to 46.7 from 53.8 in July.
“Slower expansion in agriculture was driven by declines in new business, business activity, and input costs, while the order backlogs index returned to contraction,” said a joint statement from MCCI and PEB. Employment in the sector contracted for the third month but at a slower pace, the statement added.
The manufacturing sector continued its 12th month of expansion, but growth eased, with PMI dropping to 60.6 from 61.9 in July. According to the MCCI-PEB report, expansion persisted in new orders, exports, factory output, input purchases, finished goods, imports, input costs, and supplier deliveries. However, order backlogs returned to contraction, while employment contracted for the third consecutive month.
Construction activity also reversed last month’s growth as PMI fell to 49 from 52.5. “New business, construction activity, and input costs expanded, but employment and order backlogs declined for the fourth month,” the report noted.
The services sector maintained expansion for the 11th month, though at a slower pace, with PMI easing to 61.3 from 64.6. The report highlighted continued growth in new business, overall activity, employment, and input costs, while order backlogs returned to contraction.
Looking ahead, respondents expect slower growth in agriculture, manufacturing, and construction, whereas the services sector anticipates stronger expansion. Businesses cited political uncertainty, seasonal slowdowns, and rising costs as factors limiting activity, while some sectors benefited from past orders and ongoing projects.
The Bangladesh PMI, supported by the UK Government and developed with technical input from the Singapore Institute of Purchasing & Materials Management and PEB , surveys over 500 private sector companies monthly.
The MCCI, Dhaka, established in 1904, is the country’s oldest trade body, representing major industrial and commercial enterprises. PEB, founded in 2020, provides policy research and market-oriented advisory to support economic growth and investment decisions in Bangladesh.
