Staff Reporter :
Bangladesh’s economy showed stronger signs of growth in July, with business activity rising across key sectors. According to the latest Purchasing Managers’ Index (PMI), the score jumped to 61.5, up from 53.1 in June, indicating a faster pace of expansion in the private sector.
The report was released jointly by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB).
The PMI is a widely used tool to assess the health of the economy. A reading above 50 means business activity is growing, while below 50 suggests a slowdown.
The rise in July’s PMI was largely supported by better performance in manufacturing and services.
In the manufacturing sector, businesses saw more new orders, increased production, higher imports, and greater purchase of inputs. This marked the sector’s 11th month of continuous growth. However, exports and job creation in factories declined, hinting at some challenges in global demand and employment.
The services sector also had a strong month, marking 10 straight months of growth. Companies reported higher levels of new business, increased activity, and more hiring. However, rising costs put some pressure on profits.
Meanwhile, the construction sector, which had shrunk in June, bounced back in July. New orders and construction work picked up. Still, companies were cautious about hiring, with employment falling for the third month in a row.
Agriculture also remained in growth territory for the 10th consecutive month, but at a much slower pace. The lean season and monsoon rains disrupted activity and lowered demand. As a result, fewer people were hired, though backlogged work did increase.
When asked about future business conditions, most companies in manufacturing, services, and agriculture expected slower growth in the coming months. In contrast, firms in the construction sector were more optimistic.
“The July PMI shows the economy is moving in a positive direction, especially in services and manufacturing. Monthly exports reached a record high of $4.77 billion, which is encouraging. Still, we need to watch challenges in agriculture and job creation,” said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.
The Bangladesh PMI was launched in January 2024, with support from the UK government. It surveys over 500 private companies across agriculture, manufacturing, construction, and services, offering timely insights into business trends and helping inform economic policy.
