Bangladesh’s monthly Purchasing Managers’ Index (PMI) dipped by 0.5 points to 61.7 in December, reflecting a slower expansion in the agriculture and services sectors.
However, the manufacturing sector experienced faster growth, while the construction sector returned to an expansionary phase, according to the PMI report released on Tuesday by the Metropolitan Chamber of Commerce and Industry (MCCI) and the Policy Exchange.
The agriculture sector marked its third consecutive month of expansion, though at a slower pace. The new business index contracted, while the business activity index grew more slowly than in previous months.
The manufacturing sector continued its upward trajectory, recording a fourth consecutive month of expansion and accelerating its growth rate. Key indicators such as new orders, new exports, factory output, input purchases, imports, input prices, and supplier deliveries all posted faster expansion rates.
However, the finished goods index saw slower growth, the employment index shifted back to contraction, and the order backlogs index registered a faster contraction rate.
After months of volatility, the construction sector returned to an expansionary phase. The indexes for new business and construction activity showed faster growth, although the employment index expanded more slowly. Meanwhile, the input costs index moved into expansion territory, and the order backlogs index contracted at a slower rate.
The services sector recorded its third consecutive month of expansion, albeit at a slower pace. Indexes for new business, business activity, and employment all showed reduced growth rates. Notably, the input costs index contracted for the first time, while the order backlogs index saw a faster expansion.
The future business index painted a mixed picture for key sectors. Manufacturing, construction, and services displayed faster expansion rates, while agriculture posted slower growth.
Despite the headline PMI indicating a deceleration in expansion, all major sectors remained in growth territory. This points to a cautiously optimistic outlook for Bangladesh’s economy as it enters the new year.
However, the nation continues to face significant challenges, including political instability and economic uncertainties, which could affect sustained growth.
