The Bangladesh Purchasing Managers’ Index (PMI) in September increased by 6.2 points from the previous month to 49.7 suggesting that the economy is still in the construction mode despite improvements in all key sectors.
This latest PMI reading was attributed to slower contraction readings posted by the sectors of agriculture, construction, and services, whereas the manufacturing sector reverted to an expansion.
The overall reading, suggests gradual improvement in the economy compared to last month as things normalize, despite some disruptions and challenges facing the country.
However, the economy is still in contraction mode for three consecutive months now, and far from vibrancy seen in the pre-July period.
Bangladesh's overall PMI score in September witnessed an increase of 6.2 points from August to reach 49.7. The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) successfully released the Bangladesh Purchasing Managers’ Index (PMI) September report.
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 policy makers take informed decision.
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).
The release said the agriculture sector recorded a contraction for the third month but at a slower rate.
The sector posted a slower contraction rate for the indexes of new business, business activity, and employment. The input costs index posted a slower expansion, whereas the order backlogs index posted a faster contraction.The manufacturing sector reverted to an expansion after recording two months of contraction. The indexes of new orders and input purchases reverted to an expansion, but the new exports index reverted to a contraction.
Faster contractions were recorded for the indexes of factory output and employment, whereas slower contractions were recorded for the indexes of finished goods and order backlogs.
Expansion readings were recorded for the indexes of imports, input prices, and supplier deliveries.
The construction sector recorded a contraction for the third month but at a slower rate. The new business index reverted to an expansion, but both the indexes of employment and order backlogs reverted to contractions. The construction activity index posted a slower contraction, whereas the input costs index posted a slower expansion.
The services sector recorded a contraction for the third month but at a slower rate. The new business index reverted to an expansion, whereas slower contraction readings were recorded for the indexes of business activity and employment.
The input costs index posted a slower expansion, whereas the order backlogs index reverted to a contraction.
In terms of the future business index, faster expansion rates were recorded for all key sectors of agriculture, manufacturing, construction, and services.
Business sentiments, while guarded on the recent disruptions in some industrial belts, are optimistic about the future.
