Bangladesh Purchasing Managers’ Index (PMI) for December 2025 rose by 0.2 points from November to 54.2, indicating a faster pace of expansion.
This report, released on Wednesday, by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB), provides critical insights into the economic health of the country.
Developed with the support of the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM), the PMI offers a reliable gauge for businesses, investors, and policymakers to track key economic trends.
Reading above 50 indicates expansion of a sector.
The December reading indicates continued growth in agriculture, manufacturing, and services, while the construction sector experienced a slight contraction. Agriculture sector recorded its fourth consecutive month of expansion, with stronger growth in new business, business activity, employment, and input costs.
Order backlogs index showed a faster rate of contraction, suggesting improving supply chain efficiency. Manufacturing continued its expansion for the 16th consecutive month, although at a slightly slower pace.
Key indicators like new orders, new exports, factory output, and employment showed positive growth, while the finished goods index returned to expansion. The construction sector, after three consecutive months of growth, reverted to contraction in December.
New business showed a faster contraction, though construction activity and employment continued to expand at slower rates. Input costs grew at a slightly faster pace, while the order backlogs index marked its fifth consecutive month of decline, albeit at a slower rate.
The services sector expanded for the 15th consecutive month, with stronger growth in employment and input costs.
However, new business, business activity, and order backlogs showed contraction. Despite the overall expansion, business sentiment remained subdued due to political uncertainty, rising production costs, price instability, and weak sales.
Many respondents expressed cautious optimism for gradual improvement starting from early next year.
Future business index showed slower expansion in agriculture, manufacturing, construction, and services, reflecting a more cautious outlook across key sectors.
“The latest PMI readings indicate marginal expansion, largely driven by the strong agricultural sector performance. The manufacturing sector experienced its second consecutive month of slowdown, while the construction sector reverted to contraction.
“However, the future business index remains positive, suggesting sustained optimism for continued growth post-elections,” said M Masrur Reaz, chairman and ceo of Policy Exchange Bangladesh.
