Bangladesh’s Purchasing Managers’ Index (PMI) slipped in November, falling by 7.8 points from October to 54.0, reflecting slower expansion across all major sectors.
The PMI is a forward-looking indicator used globally to gauge economic direction. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.
For all latest news, follow The Daily Star’s Google News channel. Agriculture posted its third consecutive month of expansion, though momentum eased. New business, employment, and input costs grew at slower rates, while business activity accelerated.
Order backlogs contracted at a slower pace, suggesting some resilience in demand, according to the latest report by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and the Policy Exchange Bangladesh (PEB).
M Masrur Reaz, chairman and CEO of PEB, said November’s PMI highlights “economic expansion losing steam, driven by weak global demand and low export competitiveness hurting exports, waning domestic demand, and businesses withholding investments ahead of the national elections.”
He noted that despite a yearly decline in exports, month-to-month increases and continued agricultural harvests helped sustain overall expansion.
Manufacturing recorded its 15th straight month of expansion, but growth moderated. The sector maintained expansionary readings in new orders, exports, factory output, input purchases, finished goods, imports, input prices, employment, and supplier deliveries.
However, order backlogs contracted more sharply, highlighting pressure on capacity.
Construction marked its third month of expansion, albeit at a slower rate. Activity, employment, and input costs expanded, but new business reverted to contraction.
Order backlogs also contracted faster, underscoring weaker demand in the sector.
Services registered its fourteenth month of expansion, though growth slowed significantly. Employment and input costs expanded, but new business, business activity, and order backlogs all slipped into contraction, reflecting subdued consumer demand.
The MCCI and PEB began publishing the PMI in January last year. Initiated by the UK government, it covers more than 500 private-sector firms across agriculture, manufacturing, construction, and services.