The Metropolitan Chamber of Commerce and Industry (MCCI) reported that Bangladesh's Purchasing Managers' Index (PMI) rose to 55.7 in October, a substantial 6-point increase. This positive shift suggests a return to expansionary conditions after three consecutive months of contraction, reports BSS.
The chamber in its PMI report observed that Bangladesh continues to grapple with domestic challenges such as frequent protests, sluggish improvements in law and order, as well a slowdown in public administration, despite experiencing an expansion in all key sectors of the economy in October.
The PMI reading, which signals expansion above 50 and contraction below, suggests a strengthening economic outlook, with all major sectors—agriculture, construction, manufacturing, and services—posting positive trends.
Despite ongoing contractions in employment, supplier deliveries, and order backlogs, Bangladesh's manufacturing sector showed accelerated growth in new orders, factory output, and input purchases.
Agriculture showed its first expansion in business activity and new orders after months of downturn, although employment remained in contraction.
Input costs, a key metric, rose swiftly, reflecting rising expenses across sectors.
Construction returned to growth, albeit marginally, as it recorded slower contraction rates in employment and order backlogs.
The services sector similarly moved to an expansion phase, driven by a rebound in business activity and order backlogs, though employment contraction persisted.
However, domestic challenges, including public unrest, law enforcement issues, and bureaucratic inefficiency, may dampen near-term economic growth. All sectors expressed less optimistic future business expectations, reflecting cautious optimism amidst persistent obstacles.
Bd-pratidin English/ Jisan
