The expansion was potentially driven by a rise in exports, seasonal consumption trends and a boost in the agro supply chain.
However, confidence in new business investments and expansion remains sluggish, particularly among firms catering to the domestic market, due to sluggish demand, rising business costs and energy supply disruptions, the data reveals.
Bangladesh’s economy kept expanding for the fourth month in a row in January, PMI data show.
The PMI rose by four points month on month in January, reaching a record high of 65.7.
The manufacturing sector expanded for the fifth month in a row in January, but at a slower pace, with reduced growth in new orders, exports, factory output, input purchases, imports, input prices and supplier deliveries.
The economy’s future dynamism will depend on clarity regarding the timeline and road map for transitioning to an elected political government, it noted.
The latest PMI reflects a faster rate of expansion in the agriculture, construction, and services sectors, while the manufacturing sector posted slower growth, according to domestic media reports.
New business and order backlogs returned to expansion, but the employment index reverted to contraction and input costs rose at a slower rate.
The manufacturing sector expanded for the fifth consecutive month in January, but at a slower pace, with reduced growth in new orders, exports, factory output, input purchases, imports, input prices and supplier deliveries.
The finished goods index expanded at a faster rate, while employment returned to growth, and the order backlog index contracted at a slower rate.
All key sectors—agriculture, manufacturing, construction and services—posted slower expansion rates for the future business index.
The PMI is released every month by the Metropolitan Chamber of Commerce and Industry and the Policy Exchange Bangladesh, with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management.
Fibre2Fashion News Desk (DS)