Dhaka:Bangladesh's economic activities experienced growth in October, marking a return to expansion after two consecutive months of contraction. The country's overall Purchasing Managers' Index (PMI) increased by 3.2 points, reaching 51.8. This growth was driven by stronger performances in agriculture, as well as a recovery in manufacturing, construction, and services sectors.
According to United News of Bangladesh, the October PMI report was jointly released by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh. It showed expansion across all four key economic sectors, despite weak demand-related indicators in several areas and rising business costs.
The agriculture sector showed continued strength, maintaining its expansion for the 14th consecutive month, with its PMI rising 6 points to 61.2. Meanwhile, the manufacturing sector also returned to growth, with its PMI climbing 6.1 points to 50.9, although new orders and factory output remained in contraction. The construction sector's PMI increased by 2.5 points to 51.0, marking a return to expansion, while the services sector's PMI rose by 1.3 points to 50.3, despite ongoing contraction in new business and business activity.
The Future Business Index indicated positive expectations across all sectors, suggesting optimism about future business conditions. M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, described the return to expansion as a positive development but emphasized that the recovery is still fragile due to ongoing challenges such as shrinking new orders and elevated input costs. He highlighted the importance of reliable energy supplies, easing working-capital constraints, and controlling business costs to sustain the recovery.
The Bangladesh PMI, developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM), provides timely insights into the country's economic health, aiding businesses, investors, and policymakers in decision-making.