The Bangladesh Purchasing Managers’ Index (PMI) for October has recorded a notable increase, with the expansion rate rising to 61.8, reflecting a stronger performance across key economic sectors.
The October PMI reading marks a 2.7-point improvement from the previous month, indicating a faster pace of growth in Bangladesh’s economy. This increase is attributed to stronger performance in agriculture, manufacturing, construction, and services, according to the latest data.
“The latest PMI figures highlight that the overall economy of Bangladesh continues to expand, driven primarily by favourable crop conditions and positive expectations for a good harvest in the agricultural sector,” said Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.
Dr Reaz further explained that other sectors of the economy also recorded faster growth as the country entered the final quarter of the year, with exports showing steady monthly growth and inflationary pressures gradually easing.
The October report was released on Sunday by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB). It provided an in-depth look at the state of the economy through the PMI, a pioneering initiative designed to offer timely and accurate insights into Bangladesh’s economic health. This helps businesses, investors, and policymakers make more informed decisions.
The PMI was developed by MCCI and Policy Exchange, with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM).
Agriculture Sector Shows Continued Growth
The agriculture sector posted its second consecutive month of expansion, with faster growth in key indexes such as new business, business activity, and input costs. Additionally, the employment index returned to an expansionary phase. However, the index for order backlogs showed a faster rate of contraction.
Manufacturing Sector Sees Sustained Growth
The manufacturing sector also saw its 14th consecutive month of expansion, accelerating further. The sector reported growth in new orders, exports, factory output, input purchases, finished goods, imports, input prices, employment, and supplier deliveries. However, the order backlogs index showed a more rapid decline.
Construction Sector Continues to Expand
The construction sector recorded its second consecutive month of expansion, with increased activity across new business, construction activity, employment, and input costs. The order backlogs index also showed a slower contraction rate compared to the previous month.
Services Sector Remains Strong
The services sector, which has now posted 13 months of expansion, also saw faster growth in October. Key indicators for the sector, including new business, business activity, employment, and input costs, all showed improvements. Additionally, the order backlogs index shifted back into expansion after two months of contraction.
Slower Expansion Expected in Future Business Outlook
Looking ahead, the future business index indicates a slightly slower rate of expansion across all major sectors—agriculture, manufacturing, construction, and services. This suggests a more cautious but continued growth trajectory as the year progresses.
The October PMI reflects Bangladesh’s economic resilience and the diverse growth across various sectors, providing a positive outlook for the country’s economic performance in the months to come.