Dhaka: The January reading of the Bangladesh Purchasing Managers’ Index (PMI) has increased by 4.0 points from the previous month to record a faster expansion rate at 65.7. This latest PMI reading was attributed to a faster rate of expansion posted by the sectors of agriculture, construction, and services, whereas the manufacturing sector posted a slower expansion rate.
According to Bangladesh Sangbad Sangstha, the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) successfully released the Bangladesh Purchasing Managers’ Index (PMI) January report today. 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 make informed decisions, said a press release. It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from the Singapore Institute of Purchasing and Materials Management (SIPMM).
The agriculture sector posted a fourth month of expansion and at a faster rate. The sector posted a faster expansion rate for the business activity index. Both the indexes of new business and order backlogs reverted to expansion readings. However, the employment index reverted to a contraction, and the input costs index posted a slower expansion.
The manufacturing sector posted a fifth month of expansion but at a slower rate. The sector posted slower expansion readings for the indexes of new orders, new exports, factory output, input purchases, imports, input prices, and supplier deliveries. The finished goods index posted a faster expansion, whereas the employment index reverted to an expansion. The order backlogs index posted a slower contraction rate.
The construction sector posted a second month of expansion and at a faster rate. The sector posted faster expansion readings for the indexes of new business, construction activity, and input costs. The employment index reverted to a contraction, and the order backlogs index posted a faster contraction rate.
The services sector posted a fourth month of expansion and at a faster rate. The sector posted a faster expansion rate for the indexes of new business, business activity, employment, and order backlogs. The input costs index reverted to an expansion.
In terms of the future business index, all key sectors of agriculture, manufacturing, construction, and services posted slower expansion rates. The latest PMI readings indicate that the economy remains on the expansion track for the fourth month, perhaps attributable to growing exports, seasonal consumption trends, and a boost in the agro supply chain. The confidence for new business investments and expansion, as recorded in the future business index, however, remains sluggish-particularly among firms catering to the domestic market due to sluggish demand, growing cost of business, and energy supply disruptions. The dynamism in the economy going forward will also be contingent on clarity on the timeline and roadmap for transitioning to an elected political government.