Bangladesh’s economy registered a faster pace of growth in September with the country’s Purchasing Managers’ Index (PMI) climbing 0.8 points from August to 59.1, as all four key economic sectors posted expansion readings.
It was revealed in a report jointly released by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) on Tuesday.
The PMI – a pioneering economic indicator for Bangladesh developed by MCCI and PEB with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM) – is designed to provide timely insights into the country’s economic health to help businesses, investors, and policymakers make informed decisions.
The latest reading reflects stronger expansion in the manufacturing sector alongside renewed growth in agriculture and construction, although the services sector saw its pace of expansion slow slightly.
The manufacturing sector recorded its 13th consecutive month of expansion at a faster rate, driven by strong gains in new orders, exports, factory output, input purchases, and supplier deliveries. The sector’s employment index also returned to an expansion reading.
The agriculture sector, rebounding after months of weather-related disruptions, reverted to expansion as new business, business activity, and input costs all strengthened, while contractions in employment and order backlogs slowed.
The construction sector also returned to growth after four months of contraction, supported by rising new business, increased construction activity, and higher input costs. Employment in construction also expanded, while order backlogs contracted at a slower rate.
Meanwhile, the services sector continued its 12th straight month of expansion but at a slightly slower pace, as persistent high inflation – the highest in South Asia – weighed on overall business activity despite growth in new business, employment, and input costs.
Future business expectations improved in the manufacturing, construction, and services sectors, while agriculture saw a slightly slower pace of optimism.
“The latest PMI readings indicate that the overall Bangladesh economy continued to expand at a slightly faster rate in September,” said Dr. M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.
He said that agriculture and construction sectors reverted to expansion after improvements in weather conditions and the gradual rollout of the new fiscal year budget.
“Meanwhile, the service sector posted a slower expansion reading, possibly due to persistent inflation.”
The PMI is increasingly seen as a leading barometer of short-term economic momentum in Bangladesh and a valuable tool for anticipating sectoral trends.