Bangladesh’s PMI indicates key economic sectors’ expansion in Nov
DHAKA, Dec 8, 2024 (BSS) – Bangladesh’s Purchasing Managers’ Index (PMI)
score in November saw an increase of 6.5 points from October to reach 62.2
points indicating expansion of key economic sectors, except construction.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy
Exchange Bangladesh (PEB) successfully released the Bangladesh PMI November
report yesterday.
The PMI is a pioneering initiative that aims to offer timely and accurate
insights into the country’s economic health to help businesses, investors and
policymakers take informed decision, said an MCCI press release here today.
It was developed by MCCI and Policy Exchange, with support from the UK
government and technical support from Singapore Institute of Purchasing &
Materials Management (SIPMM).
According to the November reading, Bangladesh’s PMI increased by 6.5 points
from the previous month to record a faster expansion rate at 62.2 points.
This latest PMI reading was attributed to a faster rate of expansion posted
by the sectors of agriculture, manufacturing and services but the
construction sector reverted to a contraction.
The agriculture sector posted a second month of expansion and at a faster
rate for the indexes of new business and business activity.
The employment index posted a slower contraction, whereas the order backlogs
index posted a faster contraction.
The manufacturing sector posted a third month of expansion and at a faster
rate. The sector posted expansion readings for the indexes of new orders, new
exports, factory output, input purchases and input prices.
The first-time expansion readings were recorded for the indexes of finished
goods, imports, employment and supplier deliveries. The order backlogs index
posted a slower contraction rate.
The construction sector reverted to a contraction after posting a marginal
expansion in the previous month. The sector posted contraction readings for
the indexes of input costs and order backlogs, whereas expansion readings
were recorded for the indexes of new business, construction activity and
employment.
The services sector posted a second month of expansion and at a faster rate.
The sector posted a faster expansion rate for the indexes of new business,
business activity and order backlogs. The input costs index posted a slower
expansion rate, whereas the employment index reverted to an expansion.
In terms of the future business index, faster expansion rates were recorded
for the key sectors of agriculture, construction, and services, whereas the
manufacturing sector posted a slower expansion rate.
The latest PMI readings indicate a gradual expansion of the Bangladesh
economy for the second month after previously posting three months of
contractions.
Despite the positive outlook, the economy continues to face challenges
arising from various political process-related uncertainties and disruptions
from industrial and other protests.