Bangladesh’s Purchasing Managers’ Index (PMI) score in December 2024 recorded a marginal decline of 0.5 points from November, settling at 61.7, signaling a slower but steady expansion in economic activities. The PMI, developed jointly by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB), provides a timely snapshot of the country’s economic health. The initiative, supported by the UK Government with technical expertise from the Singapore Institute of Purchasing & Materials Management (SIPMM), aims to guide businesses, investors, and policymakers with actionable insights. Bangladesh’s November PMI reflects expansion across key economic sectors This latest PMI reading was attributed to a slower rate of expansion posted by the agriculture and services sector, whereas the manufacturing sector posted a faster expansion rate, and the construction sector reverted to an expansion. The agriculture sector posted a third month of expansion but at a slower rate. The sector posted a contraction for the new business index and a slower expansion rate for the business activity index. The employment index reverted to an expansion and the input costs index posted a faster expansion, whereas the order backlogs index posted a slower contraction. The manufacturing sector posted a fourth month of expansion and at a faster rate. The sector posted faster expansion readings for the indexes of new orders, new exports, factory output, input purchases, imports, input prices, and supplier deliveries. The finished goods index posted a slower expansion, whereas the employment index reverted to a contraction. The order backlogs index posted a faster contraction rate. Economy shows positive trend as manufacturing sector regains stability in PMI The construction sector reverted to an expansion albeit the sector continued to face volatility. The sector posted faster expansion readings for the indexes of new business and construction activity, but slower expansion for the employment index. The input costs index reverted to an expansion, whereas the order backlogs index posted a slower contraction rate. The services sector posted a third month of expansion but at a slower rate.The sector posted a slower expansion rate for the indexes of new business, business activity, and employment. The input costs index posted a first-time contraction, whereas the order backlogs index posted a faster expansion rate. In terms of the future business index, the key sectors of manufacturing, construction, and services posted faster expansion rates, whereas the agriculture sector posted a slower expansion rate. The latest PMI readings indicate a somewhat positive outlook for the Bangladesh economy going into the new year.  All key sectors of the economy posted expansion readings even though the headline PMI recorded a slower expansion rate. The nation continues to face numerous challenges as it struggles towards political stability and economic growth.