Bangladesh’s economic momentum picked up notably in July, with the country’s Purchasing Managers’ Index (PMI) rising by 8.4 points from the previous month to reach 61.5, signalling a robust expansion in business activity.

The July PMI, jointly released on Thursday by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB), reflects a growing confidence in the country’s economic landscape.

Developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM), the Bangladesh PMI is a pioneering initiative designed to provide timely, reliable insights for businesses, investors and policymakers.

Government cracks down on lobbying for promotions in bank jobs

According to the report, the latest PMI reading was primarily driven by faster expansion in the manufacturing and services sectors.

The construction sector also returned to growth, while the agriculture sector, although still expanding, recorded a slower pace due to seasonal factors and monsoon-related disruptions.

The manufacturing sector posted its 11th consecutive month of expansion, with increases across key indicators such as new orders, factory output, input purchases, finished goods, imports and supplier deliveries.

The indexes for employment and new exports, however, showed contraction.

In the services sector, July marked the 10th straight month of expansion, with all major indicators—new business, business activity, employment, input costs and order backlogs—registering growth at a faster rate.

After contracting for the first time in June, the construction sector rebounded in July, showing expansion in new business, construction activity, input costs and order backlogs, though employment continued to decline.

Bangladesh receives $328 million in remittances in 5 days of August

The agriculture sector, meanwhile, experienced its 10th month of expansion but at a slower rate. Most sub-indicators, including new business and input costs, posted slower growth and employment contracted further.

Future business outlooks showed slower expansion across agriculture, manufacturing and services, while the construction sector registered an uptick in optimism.

“The latest PMI readings indicate that the overall Bangladesh economy expanded in July, primarily driven by growth in services and manufacturing sectors—with exports hitting an all-time monthly high of $4.77 billion,” the report says.

“The agricultural sector, however, recorded slower expansion in July, reflecting the lean period and monsoon disruptions,” it mentions