Bangladesh’s Purchasing Managers’ Index (PMI) for September rose by 0.8 points to 59.1, signaling faster economic expansion.
PMI is a leading indicator of economic activities, developed through surveys of business executives, and a reading above 50 indicates economic expansion.
The latest PMI report, released on Tuesday by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), reflects growth across key economic sectors.
The manufacturing sector recorded its 13th consecutive month of expansion, posting a PMI of 65.0 in September, up from 60.6 in August.
This growth was driven by positive readings in new orders, exports, factory output, input purchases, finished goods, imports, input prices, and supplier deliveries, according to the index providers.
Developed with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management, the PMI provides timely insights into Bangladesh’s economic health, helping businesses and policymakers track the pace of the economy and make informed decisions.
The agriculture sector returned to expansion with a PMI of 50.3 in September, up from 46.7 in August. This indicates growth in new business, business activity, and input costs.
The construction sector also entered expansion, with its PMI rising to 55.1 from 49.0 in August, driven by growth in new business, construction activity, and input costs.
Employment in the construction sector returned to expansion after four months of contraction, and order backlogs showed slower contraction, highlighting the sector’s recovery.
The services sector, although still expanding for the 12th consecutive month, showed slower growth in September, with its PMI dropping to 58.7 from 61.3 in August. Despite growth in new business, business activity, employment, and input costs, the services sector’s expansion slowed, with order backlogs showing slower contraction.
MCCI and PEB said that the latest PMI data reflects continued economic growth, with agriculture and construction benefiting from better weather and the gradual rollout of the new fiscal year budget.
However, inflation remains a challenge, particularly in the services sector, where it is still the highest in South Asia.
“The latest PMI readings show that Bangladesh’s economy continued expanding at a slightly faster rate in September,” said PEB Chairman and CEO Dr M Masrur Reaz.
“The agriculture and construction sectors bounced back due to improved weather and the gradual fiscal rollout, but the services sector posted slower expansion, likely due to ongoing inflation pressures,” he added.
