Country’s overall economic activity gained momentum in February, with the Purchasing Managers’ Index (PMI) rising to 55.7, indicating a faster pace of expansion compared with the previous month.
The Bangladesh PMI February report, released on Sunday by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB), showed the index increased by 1.8 points from January.
The PMI is designed to provide timely insights into the country’s economic conditions to help businesses, investors and policymakers make informed decisions. The index was developed by MCCI and Policy Exchange Bangladesh with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management.
According to the report, stronger growth in agriculture, manufacturing and services drove the overall expansion, while the construction sector returned to contraction during the month.
The agriculture sector recorded its sixth consecutive month of expansion, with faster growth in new business and business activity. Input costs and order backlogs also returned to expansion, though employment in the sector continued to contract at a faster pace.
Manufacturing maintained expansion for the 18th straight month, with growth accelerating in February. Key indicators including new orders, factory output, imports, input prices and supplier deliveries remained in expansion. However, new exports, finished goods and employment continued to contract, while order backlogs reverted to contraction.
The construction sector slipped back into contraction after expanding in January. New business, employment and order backlogs declined, although construction activity and input costs showed expansion.
Meanwhile, the services sector registered its 17th consecutive month of expansion, with faster growth across new business, business activity, employment, input costs and order backlogs.
The future business index pointed to continued expansion across all major sectors—agriculture, manufacturing, construction and services—indicating positive business expectations in the coming months.
Businesses surveyed in the report noted a degree of seasonal optimism ahead of Ramadan and Eid-ul-Fitr, which is expected to boost demand, particularly in services and retail. However, firms also highlighted persistent pressure from rising input costs, including raw materials, labour and utilities.
Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said the February PMI suggests a modest increase in economic activity, supported by stronger demand in agriculture and services linked to Ramadan-related consumption.
He also warned that escalating military tensions in the Middle East could pose downside risks to Bangladesh’s growth outlook.
Despite the seasonal boost in demand, the report noted that broader growth prospects remain constrained by persistent inflationary pressure, sector-specific challenges and external economic risks.