Dhaka: The February reading of the Bangladesh Purchasing Managers' Index (PMI) has reached an expansion rate of 64.6, with all key sectors of the economy posting expansion readings, indicating a robust economic performance.
According to Bangladesh Sangbad Sangstha, the latest PMI reading is attributed to varying rates of expansion across different sectors. While the construction and services sectors experienced a slower rate of expansion, the agriculture and manufacturing sectors posted faster expansion rates. The Bangladesh Purchasing Managers' Index is a joint initiative by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB), aiming to provide timely insights into the country's economic health to aid businesses, investors, and policymakers.
The PMI, developed with support from the UK Government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM), showcases the agriculture sector's fifth month of expansion, marked by increased rates in new business, business activity, input costs, and order backlogs. The employment index within agriculture, however, posted a slower contraction.
The manufacturing sector recorded its sixth consecutive month of expansion, bolstered by improvements in new orders, factory output, input purchases, and supplier deliveries. Despite this growth, indexes for new exports, finished goods, imports, and employment reflected slower expansion rates, with the order backlogs index contracting at a faster pace.
In the construction sector, a slower rate of expansion was observed for the third month, with new business and construction activity indexes showing reduced growth, while the input costs index expanded at a faster rate. The employment index in construction returned to expansion, and the order backlogs index contracted at a slower rate.
The services sector marked its fifth month of expansion but at a slower pace, particularly in new business, business activity, and employment indexes. The order backlogs index returned to contraction, whereas the input costs index accelerated its expansion.
Despite the overall expansion, the future business index indicated slower growth rates across all key sectors, including agriculture, manufacturing, construction, and services.
M. Masrur Reaz, Chairman and CEO of Policy Exchange, highlighted that while the PMI readings indicate sustained economic expansion driven by export growth and a seasonal uptick in agriculture, business confidence remains weak due to sluggish demand, energy disruptions, and ongoing protests. He stressed that a sustained recovery would depend on improved law and order, political consensus on the election roadmap, and expedited implementation of priority reforms.