Bangladesh’s economic expansion slowed in August as both manufacturing and services sectors reported weaker growth, while agriculture and construction slipped back into contraction, according to the latest Purchasing Managers’ Index (PMI).
The PMI – jointly prepared by the Metropolitan Chamber of Commerce and Industry, and Policy Exchange Bangladesh – stood at 58.3 in August, down 3.2 points from July’s reading.
It is an economic indicator, with a reading of above 50 indicating economic expansion, while below 50 means contraction and 50 refers to stagnation.
As the August figure was above 50, it indicates overall expansion despite the slowdown.
The agriculture sector reverted to contraction after recording its 10th month of expansion.
It posted slower expansion rates for the indices of new business, business activity, and input costs, while the order backlogs index returned to contraction.
The employment index posted contraction for the third month, but at a slower rate.
On the other hand, the manufacturing sector posted its 12th month of expansion, but at a slower rate.
It posted expansion readings for the indices of new orders, new exports, factory output, input purchases, finished goods, imports, input prices, and supplier deliveries.
The order backlogs index fell back into contraction, while the employment index posted contraction for the third month.
Besides, the construction sector slipped back into contraction after posting a first-time expansion reading in the previous month.
It posted expansion readings for the indices of new business, construction activity, and input costs.
jasimharoon@yahoo.com