The October reading of the Bangladesh Purchasing Managers’ Index (PMI) increased by 6.0 points from the previous month to revert to an expansion at 55.7, after recording 3 months of consecutive contractions.
The latest readings provide early indications of a return to expansion track for the Bangladesh economy with agriculture, construction, and service sectors posting expansion for the first time in months, whereas the manufacturing sector posted a faster rate of expansion, the Metropolitan Chamber of Commerce and Industry (MCCI) said in its latest PMI report.
MCCI and Policy Exchange Bangladesh have jointly developed the PMI.
The latest report said the agriculture sector reverted to an expansion after recording 3 months of consecutive contractions.
The sector posted a first-time expansion for the indexes of new business and business activity, whereas the employment posted a faster contraction. The input costs index posted a faster expansion, whereas the order backlogs index posted a slower contraction, according to an MCCI press release.
The manufacturing sector posted a faster rate of expansion. The sector posted expansion readings for the indexes of new orders, new exports, factory output, input purchases, and input prices.
The construction sector reverted to a marginal expansion after recording 3 months of consecutive contractions.
The sector posted slower contraction readings for the indexes of construction activity, employment, and order backlogs, but the new business index reverted to a marginal contraction, the release said.
The services sector reverted to an expansion after recording 3 months of consecutive contractions. The sector posted a first-time expansion for the indexes of business activity and order backlogs.
In terms of the future business index, slower expansion rates were recorded for all key sectors of agriculture, manufacturing, construction, and services.
Despite all key sectors of the economy posting expansion readings, the country continues to grapple with domestic challenges such as frequent protests and sluggish improvements in law and order, as well as the slowdown in public administration, according to the release.