Staff Reporter :
The Bangladeshi economy may have experienced growth in February, albeit at a slower pace, due to sluggish performance in the construction and services sectors amid a severe energy crisis.
According to the Bangladesh Purchasing Managers’ Index (PMI) released on Sunday, February marked the fifth consecutive month of expansion, primarily driven by consistent growth in the agriculture and manufacturing sectors.
The agriculture sector recorded its fifth month of expansion, while the manufacturing sector noted its sixth month of growth.
Both sectors demonstrated accelerated growth, as indicated by the PMI, a monthly index prepared by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB).
The PMI serves as a forward-looking economic indicator, designed to provide insights into the direction of the economy.
In February, the PMI reading for the agriculture sector rose by 7.8 points to 66.4, up from 58.6 in the previous month.
The manufacturing index also increased, reaching 72.6 last month compared to 68.5 in January, indicating expansion.
The PMI reported faster growth in new orders, factory output, input purchases, and supplier deliveries within the manufacturing sector.
However, there was a slowdown in new exports, finished goods, imports, and employment. Similarly, the construction sector experienced its third month of expansion, although at a slower rate.
The services sector also recorded its fifth month of expansion, but the pace of growth has decelerated, as noted by the MCCI and PEB in a press statement.
M Masrur Reaz, Chairman and CEO of PEB, stated that the PMI readings for Bangladesh indicate sustained expansion for the fifth month, driven by continued growth in exports and a seasonal increase in agricultural activity, while construction and services have shown slower expansion.
He added, “Business confidence remains weak due to sluggish demand, energy disruptions, and ongoing protests.
A sustained recovery will depend on improved law and order, political consensus regarding the election roadmap, and the expedited implementation of priority reforms.”
The MCCI and PEB launched the Bangladesh PMI in February 2024, covering key economic sectors based on survey data compiled from monthly surveys of over 500 private sector enterprises.
Survey responses reflect changes in business activity, if any, in the current month compared to the previous month.
