Staff Reporter :
Bangladesh’s economy remained in expansionary territory for the ninth consecutive month in June, though the pace of growth eased, according to the latest Purchasing Managers’ Index (PMI) data released on Monday.
The PMI stood at 53.1 for June, signalling continued economic expansion but marking a 5.8-point decline from May, reflecting a slowdown in overall activity. The monthly index, jointly developed by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB), provides timely insights into the country’s economic performance. The initiative is supported by the UK Government, with technical guidance from the Singapore Institute of Purchasing & Materials Management (SIPMM).
The construction sector recorded a contraction for the first time in eight months, contributing significantly to the softer expansion. The sector saw declines across new business, employment, activity levels, and order backlogs. Input costs continued to rise, albeit at a slower pace.
Agriculture maintained its ninth straight month of growth, although at a reduced rate. The sector experienced its first contraction in employment, even as new business, input costs, business activity, and backlogs of orders grew at a faster pace.
In the manufacturing sector, June marked the tenth consecutive month of expansion, though momentum weakened. There were contractions in input purchases, inventory of finished goods, imports, and employment. New orders, export demand, factory output, and input prices all grew more slowly, while the backlog of orders reversed a ten-month contraction trend and returned to growth.
The services sector also extended its growth streak to a ninth month, but like other sectors, expansion was more subdued. Declines were observed in new business, overall activity, and order backlogs, while both employment and input costs registered faster growth.
Looking ahead, expectations for future business activity varied across sectors. While manufacturing and construction posted slower projections for future expansion, agriculture and services showed improved confidence and higher anticipated growth.
Commenting on the findings, Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said, “The latest PMI figures confirm that Bangladesh’s economy has remained in expansion mode for nine straight months. However, the growth momentum slowed in June, with construction entering contraction for the first time since last October.”
Dr Reaz attributed the deceleration to seasonal and structural factors, including the extended Eid holidays, the start of the monsoon season, and market anticipation around fiscal measures announced in the national budget, particularly adjustments in taxation.
The PMI serves as a valuable barometer for policymakers, investors, and business leaders, offering a real-time snapshot of economic trends across key sectors. Despite the temporary moderation, the sustained expansion across most segments signals continued resilience in Bangladesh’s economy amid evolving macroeconomic conditions.
