Bangladesh’s overall Purchasing Managers’ Index (PMI) edged higher in December, indicating modest economic expansion driven by agriculture, manufacturing, and services, according to the latest report.
The PMI increased by 0.2 points from November to reach 54, remaining well above the 50-point threshold that separates expansion from contraction. The report was jointly released by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB).
Developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM), the PMI provides timely insights into the country’s economic health to guide businesses, investors, and policymakers.
Agriculture: The sector recorded its fourth consecutive month of expansion, accelerating further in December. Growth was driven by higher new business, business activity, employment, and input costs, while order backlogs contracted faster, indicating pressure on fulfillment capacity.
Manufacturing: Manufacturing remained in expansion for the 16th month, though growth slowed slightly. Key indicators including new orders, export orders, output, input purchases, imports, input prices, and employment stayed positive. Finished goods production returned to expansion, while order backlogs contracted more slowly.
Construction: Construction reverted to marginal contraction in December. New business declined faster, while activity and employment expanded at a slower pace. Input costs rose slightly, and order backlogs fell for the fifth consecutive month, though at a slower rate.
Services: The services sector posted its 15th consecutive month of expansion, with slight acceleration. Employment and input costs remained positive, while new business, business activity, and order backlogs contracted, reflecting uneven demand conditions.
Looking ahead, the future business index indicated slower expansion across agriculture, manufacturing, construction, and services, signaling cautious optimism.
Commenting on the findings, Dr. M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said the PMI points to marginal economic expansion, largely supported by agriculture.
“Manufacturing slowed for a second month, and construction contracted, but the future business index remained positive across all key sectors, suggesting sustained optimism and continued growth momentum in the post-election period,” he said.
Source: BSS
Bd-pratidin English/ Jisan
