According to the report, agriculture recorded its third consecutive month of expansion, though at a slower pace
Representational image/collected
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Representational image/collected
Bangladesh’s Purchasing Managers’ Index (PMI) for November settled at 54 points, declining by 7.8 points from the previous month and indicating a clear loss of momentum in the country’s economic expansion.
The latest PMI reading reflects slower expansion across all key sectors – agriculture, manufacturing, construction, and services, according to a press release from the Metropolitan Chamber of Commerce and Industry (MCCI).
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) released the Bangladesh Purchasing Managers’ Index (PMI) report for November today (7 December).
The October reading of the PMI gained by 2.7 points from the previous month to post a faster expansion rate at 61.8.
“November’s PMI indicates that economic expansion is losing steam, driven by weak global demand and low export competitiveness, waning domestic demand, and businesses holding back investments ahead of the national elections,” said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.
He added, “Despite a year-on-year decline in exports, the month-to-month increase, along with continued agricultural harvests, helped maintain the overall expansionary trend. Interestingly, a faster expansion in the future business index was recorded across all sectors except manufacturing.”
The PMI is a pioneering initiative designed to offer timely and accurate insights into the country’s economic health, helping businesses, investors, and policymakers make informed decisions. The report has been published monthly since May 2024.
A PMI reading above 50 indicates that a sector or the overall economy is generally expanding. A reading of 50 signals no change from the previous month, while a reading below 50 indicates contraction.
According to the report, agriculture recorded its third consecutive month of expansion, though at a slower pace. The sector showed slower expansion in new business, employment, and input costs, while the business activity index posted a faster rate of expansion. The order backlogs index showed a slower contraction.
Manufacturing posted its 15th consecutive month of expansion, albeit at a slower rate. The sector recorded expansion in new orders, new exports, factory output, input purchases, finished goods, imports, input prices, employment, and supplier deliveries. However, the order backlog index showed a faster contraction.
Construction posted its third month of expansion, though again at a slower rate. The sector recorded expansion in construction activity, employment, and input costs. The order backlogs index saw a faster contraction, while the new business index reverted to contraction territory.
Services recorded its 14th consecutive month of expansion, but at a slower rate. The sector posted expansion in employment and input costs. However, the indexes for new business, business activity, and order backlogs all reverted to contraction readings.
Regarding the future business index, faster expansion was recorded in agriculture, construction, and services, while the manufacturing index showed a slower expansion rate.