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Bangladesh’s Oct PMI rises to 61.8 as major sectors expand faster

Bangladesh’s economy continued to show strong momentum in October, as the country’s overall Purchasing Managers’ Index (PMI) climbed to 61.8 — up by 2.7 points from September — reflecting a faster pace of expansion across all key sectors: agriculture, manufacturing, construction, and services.

The findings were revealed in the Bangladesh PMI October 2025report, jointly released on Sunday by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB).

The PMI, supported by the UK Government and developed with technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM), provides timely insights into the country’s economic health to guide businesses, investors, and policymakers.

According to the report, the agriculture sector posted its second consecutive month of expansion at a faster rate, supported by strong growth in new business, business activity, and input costs, while employment returned to expansion. However, order backlogs continued to contract.

The manufacturing sector recorded its 14th straight month of expansion, also at a faster pace. Growth was observed in new orders, exports, factory output, input purchases, and employment, though order backlogs showed a sharper contraction.

The construction sector expanded for the second month in a row, with stronger performance in new business, construction activity, employment, and input costs. The pace of contraction in order backlogs slowed.

The services sector maintained its upward momentum, posting its 13th consecutive month of expansion. New business, activity, employment, and input costs all registered gains, while order backlogs returned to growth after two months of contraction.

However, the report noted that forward-looking indicators — including the future business index — showed slower expansion expectations across all four sectors.

Commenting on the findings, Dr. M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said,

“The latest PMI readings indicate that the overall Bangladesh economy continued to expand, primarily driven by favourable crop conditions and expectations of a good harvest in the agricultural sector. Other sectors also posted faster expansion rates going into the final quarter of the year, with monthly growth in exports and inflation gradually waning.”

The PMI, an internationally recognised measure of business activity and economic sentiment, suggests that Bangladesh’s economy remains on a firm expansion path as it heads toward the close of 2025.

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