The November reading of the Bangladesh Purchasing Managers' Index (PMI) registered a slower rate, but still an expansionary level of 54.0.
This latest PMI reading was attributed to a slower expansion rate for all the four key sectors of agriculture, manufacturing, construction, and services.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) successfully released the Bangladesh Purchasing Managers' Index (PMI) November 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 take informed decisions.
It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from Singapore Institute of Purchasing and Materials Management (SIPMM), said a press release.
The agriculture sector posted its third month of expansion, but at a slower rate. The sector posted slower expansion readings for the indexes of new business, employment, and input costs, whereas the business activity index posted a faster rate of expansion. The order backlogs index also posted a slower contraction rate.
The manufacturing sector posted its 15th month of expansion, but at a slower 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. However, the order backlogs index posted a faster contraction rate. The construction sector posted its third month of expansion, albeit at a slower rate. The sector posted expansion readings for the indexes of construction activity, employment, and input costs. The order backlogs index posted a faster contraction rate, and the new business index reverted to a contraction reading.
The services sector posted its 14th month of expansion, but at a slower rate. The sector posted expansion readings for the indexes of employment and input costs. However, all the indexes of new business, business activity, and order backlogs reverted to contraction readings.
In terms of the future business index, faster expansion rates were recorded for the indexes of agriculture, construction, and services, whereas the manufacturing index posted a slower expansion rate.
"November PMI indicates economic expansion losing steam, driven by weak global demand and low export competitiveness hurting exports, waning domestic demand and businesses withholding investments ahead of the national elections," said Dr. M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.
Despite yearly decline in exports, month-to-month increase and continued agricultural harvests helped secure overall expansion track, he said, adding, "Interestingly, faster expansion for future business index was noted for all sectors, except manufacturing."
Bd-pratidin English/ ANI
