Bangladesh’s economy is gaining momentum, with the Purchasing Managers' Index (PMI) for November 2024 reaching a robust 62.2, a 6.5-point increase from October. The report, jointly released on Sunday by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB), highlights significant growth across key sectors.
The PMI, developed in partnership with the UK government and the Singapore Institute of Purchasing & Materials Management (SIPMM), serves as a critical tool for assessing the country's economic health. It offers timely insights for businesses, investors, and policymakers to make informed decisions.
The agriculture sector experienced its second consecutive month of growth, with an accelerated expansion in new business and overall activity. While employment within the sector saw a slower contraction, backlogged orders decreased at a faster pace, signaling increased efficiency.
November marked the third month of manufacturing growth, with faster expansion recorded in new orders, exports, factory output, and input purchases. For the first time, the sector reported expansion in areas such as finished goods, imports, employment, and supplier deliveries. Notably, backlogged orders contracted at a slower rate, reflecting improved operational efficiency.
Economy shows positive trend as manufacturing sector regains stability in PMI
The services sector also posted its second month of accelerated expansion. Key indexes such as new business, business activity, and order backlogs grew at faster rates. Although input costs rose at a slower pace, the employment index returned to expansion, underscoring increased workforce engagement.
The construction sector bucked the positive trend, reverting to contraction after marginal growth in October. Despite expansion in new business, construction activity, and employment, contraction was reported in input costs and backlogged orders, signaling challenges in operational scalability.
The Future Business Index reflected optimism, with accelerated growth anticipated in agriculture, construction, and services. However, the manufacturing sector is expected to experience slower growth in the near term.
This marks the second consecutive month of economic expansion for Bangladesh after a three-month contraction period. However, the report cautions that political uncertainties and industrial disruptions pose risks to sustained growth.