Most sectors of Bangladesh’s economy recorded expansion in December, although the pace of growth has slowed, according to the latest Purchasing Managers’ Index (PMI) released by the Metropolitan Chamber of Commerce and Industry (MCCI).
The findings were presented at a seminar titled Systematic Efforts to Understand Economic Pulse: Importance of Purchasing Managers’ Index (PMI) held at the MCCI office in Gulshan on Monday night. The event was organised by MCCI.
According to MCCI, all major sectors except construction posted expansion and growth in December. The overall PMI for Bangladesh rose by 0.2 points to 54.2 in December, signalling a slightly faster expansion in economic activity.
The chamber said the expansion was mainly driven by continued growth in agriculture, manufacturing and services.
The agriculture sector remained in expansion for the fourth consecutive month, with growth gaining further momentum. Strong increases were recorded in new business, overall business activity, employment and input costs.
The manufacturing sector stayed in expansion for the 16th consecutive month, although the pace of growth eased somewhat.
Indicators such as new orders, new export orders, factory output, input purchases, imports, input prices, employment and supplier delivery times all remained in expansionary territory.
In contrast, the construction sector slipped back into slight contraction in December after three months of expansion. MCCI said the rate of contraction in new business increased, while growth in construction activity and employment slowed. However, the pace of expansion in input costs edged up slightly.
The services sector continued to show resilience, remaining in expansion for the 15th consecutive month, with a modest acceleration in growth during December.
Based on the future business outlook index, MCCI noted that expansion is expected to continue across agriculture, manufacturing, construction and services.
However, the organisation cautioned that overall growth momentum remains comparatively slow across sectors.
MCCI President Kamran T Rahman delivered the welcome address, while Bangladesh Bank Governor Dr Ahsan H. Mansur attended as the chief guest. Other speakers included Deputy High Commissioner and Development Director of the British High Commission to Bangladesh James Goldman, Policy Exchange Bangladesh Chairman and CEO Dr M. Masrur Reaz, and Policy Research Institute (PRI) Chairman Dr Zaidi Sattar.