Bangladesh's overall Purchasing Managers' Index (PMI) score recorded an expansion rate of 61.7. This latest reading was attributed to a slower rate of expansion in the agriculture, manufacturing, and construction sectors, while the services sector posted a faster expansion rate.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) jointly released the Bangladesh Purchasing Managers' Index March report on Monday, reports BSS.
The PMI is a pioneering initiative designed to offer timely and accurate insights into the country’s economic health, helping businesses, investors, and policymakers make informed decisions.
It was developed by MCCI and Policy Exchange with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM), according to a press release.
The agriculture sector posted its sixth consecutive month of expansion, albeit at a slower rate. It recorded slower expansion in new business, business activity, and input costs. The order backlogs index returned to contraction, while the employment index showed a faster rate of contraction.
The manufacturing sector recorded its seventh straight month of expansion, also at a slower pace. Most indexes posted expansion readings, except the order backlogs index, which showed a slower contraction.
The construction sector registered its fourth month of expansion, again at a slower rate. New business and input costs indexes posted slower expansion, while the employment index showed a faster rate of expansion. The construction activity index reverted to contraction, and the order backlogs index showed a slower contraction rate.
The services sector marked its sixth consecutive month of expansion and at a faster pace. It showed stronger expansion in business activity and employment, though expansion slowed for new business and input costs. The order backlogs index showed a faster rate of contraction.
In terms of the future business index, faster expansion was observed in the agriculture and construction sectors, while the manufacturing sector posted a slower expansion. The services sector index reverted to contraction.
"The latest PMI readings indicate a slower expansion of the economy in March. Only the service sector managed to post faster expansion, driven by Eid festivity, which is usually the peak business window for the retail sub-sector. However, the future business index for the sector posted its first contraction after 15 months of expansion," said Dr. M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.
Bd-pratidin English/FNC
