Purchasing Managers’ Index
Bangladesh October PMI records faster expansion rate at 61.8
The October reading of the Bangladesh Purchasing Managers’ Index (PMI) gained 2.7 points from the previous month to post a faster expansion rate at 61.8.
This latest PMI reading was attributed to a faster expansion rate for all the key sectors of agriculture, manufacturing, construction and services.
“The latest PMI readings indicate that the overall Bangladesh economy continued to expand, primarily driven by favourable crop conditions and expectations of a good harvest in the agricultural sector,” said Dr M Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh.
Other sectors of the economy also posted faster expansion rates, going into the final quarter of the year, with monthly growth in exports and inflation gradually waning, he said on Sunday (9th November 2025).
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Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) released the Bangladesh Purchasing Managers’ Index (PMI) October report on Sunday.
The PMI is a pioneering initiative that aims to offer timely and accurate insights into the country's economic health to help businesses, investors and policy makers make informed decisions.
It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from Singapore Institute of Purchasing & Materials Management (SIPMM).
The agriculture sector posted its 2nd month of expansion, and at a faster rate. The sector posted faster expansion readings for the indexes of new business, business activity, and input costs, and the employment index reverted to an expansion reading.
The order, however, backlogs index posted a faster contraction rate.
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The manufacturing sector posted its 14th month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new orders, new exports, factory output, input purchases, finished goods, imports, input prices, employment, and supplier deliveries. The order backlogs index recorded a more rapid decline.
The construction sector posted its 2nd month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new business, construction activity, employment, and input costs. The order backlogs index posted a slower contraction rate.
The services sector posted its 13th month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new business, business activity, employment, and input costs. The order backlogs index reverted to an expansion reading after recording 2 months of contraction readings.
In terms of the future business index, slower expansion rates were recorded for all key sectors of agriculture, manufacturing, construction and services.
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Bangladesh sees sluggish growth in new business and employment in Feb: Report
Bangladesh experienced sluggish growth in new business and employment in February as compared to January, according to the latest Purchasing Managers’ Index (PMI) report.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, alongside Policy Exchange Bangladesh (PEB), released the PMI for February on Sunday, highlighting a decline of 1.1 points from the previous month, bringing the index to a slower expansion rate of 64.6.
This dip in PMI is attributed to slower growth in the construction and services sectors, while agriculture and manufacturing showed stronger expansion, the report revealed.
The PMI, an initiative by MCCI and Policy Exchange, aims to provide timely insights into Bangladesh’s economic health, helping businesses, investors, and policymakers make informed decisions.
It is developed with support from the UK government and technical backing from the Singapore Institute of Purchasing and Materials Management (SIPMM).
Sector-wise Performance:
Agriculture: The agriculture sector reported its fifth consecutive month of expansion, with acceleration in the rate of growth. This was reflected in the increases in new business, business activity, input costs, and order backlogs. But the employment index showed a slower contraction.
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Manufacturing: The manufacturing sector posted its sixth month of expansion at a faster rate, with notable growth in new orders, factory output, input purchases, and supplier deliveries. Nonetheless, the sector recorded slower expansion in new exports, finished goods, imports and employment. The order backlogs index showed a faster contraction.
Construction: The construction sector recorded its third consecutive month of expansion, but at a slower pace. There was a deceleration in new business and construction activity, though input costs showed a faster expansion. The employment index saw a return to expansion, while the order backlogs index showed a slower contraction.
Services: The services sector expanded for the fifth consecutive month but at a slower rate. This was evident in slower growth in new business, business activity, and employment. The order backlogs index reverted to contraction, while the input costs index showed a faster increase.
Outlook and Challenges
M Masrur Reaz, Chairman and CEO of Policy Exchange, noted that Bangladesh's PMI readings indicate a sustained expansion for the fifth month, driven by continued growth in exports and a seasonal uptick in agriculture. However, slower expansion was recorded in construction and services.
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He also highlighted concerns over weak business confidence, citing sluggish demand, energy disruptions, and ongoing protests.
Reaz emphasised that a sustained recovery will depend on improved law and order, political consensus on the election roadmap, and the expedited implementation of key reforms.
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