Dhaka: Bangladesh's overall PMI score recorded an expansion rate at 61.7. This latest PMI reading was attributed to a slower rate of expansion posted by the sectors of agriculture, manufacturing, and construction, whereas the services sector posted a faster expansion rate.
According to Bangladesh Sangbad Sangstha, the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) successfully released the Bangladesh Purchasing Managers' Index (PMI) March report today. 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 policymakers make informed decisions.
It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from the Singapore Institute of Purchasing and Materials Management (SIPMM), said a press release. The agriculture sector posted a sixth month of expansion but at a slower rate. The sector posted slower expansion rates for the indexes of new business, business activity, and input costs, with the order backlogs index reverting to a contraction and the employment index posting a faster contraction.
The manufacturing sector posted a seventh month of expansion but at a slower rate, with expansion readings for most indexes except for the order backlogs index, which posted a slower contraction rate. The construction sector posted a fourth month of expansion but at a slower rate, with slower expansion readings for the indexes of new business and input costs, whereas the employment index posted a faster expansion rate. The construction activity index reverted to a contraction, with the order backlogs index posting a slower contraction rate.
The services sector posted a sixth month of expansion and at a faster rate, with faster expansion rates for the indexes of business activity and employment, but slower expansion rates for the indexes of new business and input costs. The order backlogs index posted a faster contraction rate. In terms of the future business index, faster expansion rates were recorded for the indexes of agriculture and construction, whereas the manufacturing index posted a slower expansion rate. The services index reverted to a contraction.
"The latest PMI readings indicate slower expansion of the economy in March. Only the service sector managed to post faster expansion, driven by Eid festivity which is usually a peak business window for the retail sub-sector. The future business index for the sector, however, posted a first-time contraction after 15 months of expansion," said Dr. M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.