Bangladesh’s economic activity accelerated in July, with the country’s Purchasing Managers’ Index (PMI) reaching a high of 61.5, an increase of 8.4 points from the previous month, according to recent data released on 7th August. The sharp rise in the PMI reflects robust expansion in the manufacturing and services sectors.
The PMI, a joint publication of the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), offers timely insights into economic trends, aiding businesses, investors, and policymakers in decision-making.
M Masrur Reaz, chairman and CEO of PEB, commented on the figures, stating, “This latest PMI reading indicates a significant expansion in the economy, particularly in manufacturing and services.” He also highlighted that exports hit an all-time monthly high of US $ 4.77 billion, underscoring positive momentum, though he noted that agricultural growth slowed due to seasonal factors.
Manufacturing maintained its growth streak for the 11th consecutive month, driven by increased new orders, higher output, and stronger input purchases. However, employment and new export orders declined, signaling cautious optimism among producers despite overall activity gains.
Despite the overall positive PMI reading, concerns remain regarding future growth prospects. Expectations for future expansion slowed across agriculture, manufacturing, and services, although construction was the only sector to anticipate a faster rate of growth.
The PMI initiative, developed by MCCI and PEB with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management, aims to serve as a timely barometer of Bangladesh’s economic health, helping inform strategic decisions for businesses and policymakers.