The July reading of the Bangladesh Purchasing Managers’ Index (PMI) rose by 4.9 points from the previous month to 57.8, indicating a stronger pace of economic expansion.
The improvement was driven primarily by a strong rebound in manufacturing, while construction remained marginally in contraction despite a broad-based improvement.
Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB) released the Bangladesh Purchasing Managers’ Index (PMI) July report on Sunday, August 9.
Three of the four key sectors recorded expansion, with manufacturing registering the strongest performance at 65.4, followed by agriculture at 55.2 and services at 56.0.
The agriculture sector recorded its eleventh consecutive month of expansion, although growth moderated by 9.6 points.
New business and business activity remained in expansion, while employment moved into marginal contraction.
Input costs continued to expand strongly, while order backlogs remained in contraction.
The manufacturing sector recorded the strongest turnaround, rising 16.6 points to 65.4 and making the largest positive contribution to the headline PMI. Expansion was recorded across new orders, new export orders, output, input purchases, imports, employment and supplier deliveries, with input prices also rising. Order backlogs, however remained in contraction
The construction sector remained marginally in contraction at 49.3, but improved by 9.1 points from June. New business, construction activity and employment recorded slower rates of contraction, while input costs and order backlogs continued to expand.
The services sector continued to expand for the 22nd month, rising 1.4 points to 56.0. New business, employment and input costs recorded faster expansion, while the backlog of orders registered a slower contraction. Business activity remained in expansion.
The Future Business Index recorded strong expansion across all sectors, reflecting high optimism regarding business conditions in the coming months.
The July PMI signals broad-based strengthening of Bangladesh’s economy, led by a sharp manufacturing rebound and continued expansion in agriculture and services, said M Masrur Reaz, chairman and CEO of PEB.
The manufacturing recovery coincided with the highest monthly export earnings in 12 months, while construction remained marginally in contraction despite improving conditions. Strong optimism across all sectors points to improving business confidence, stronger external-sector prospects, improved foreign-exchange conditions, and expectations of a more supportive business environment following the FY27 budget, he added.
The PMI was developed by MCCI and Policy Exchange, with support from UK Government and technical support from Singapore Institute of Purchasing & Materials Management (SIPMM).