Broad-based growth pushes PMI to 62.8
Bangladesh’s economy gained significant momentum in May 2026, with the country’s Purchasing Managers’ Index (PMI) rising sharply to 62.8 from 54.6 in April, signalling a broad-based expansion across manufacturing, services, construction and agriculture.
The latest PMI data, released on Monday by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), indicate a strengthening of economic activity driven by robust domestic demand and increased business activity ahead of Eid.
The manufacturing sector recorded the strongest improvement among the major sectors, with its PMI rising to 64.1 in May from 56.9 in April. Growth was supported by increases in new orders, export orders, input purchases and employment.
Imports and order backlogs also returned to expansion territory. However, growth in factory output moderated, while inventories of finished goods continued to decline.
The services sector maintained its growth trajectory for a twentieth consecutive month. The sector’s index climbed to 62.3 from 51.8 in April, reflecting stronger business activity, higher employment and rising input costs. New business also returned to expansion after a period of slowdown.
The construction sector rebounded in May after three months of contraction. Its index rose to 52.9 from 44.6 in April, supported by growth in new business, construction activity and employment. Firms, however, reported increasing input costs, highlighting ongoing cost pressures within the sector.
Agriculture continued its steady expansion, marking a ninth consecutive month of growth. Although the sector’s index eased slightly to 70.0 from 70.7 in April, business activity and employment strengthened further. Growth in new business and input costs slowed, while order backlogs contracted during the month.
Despite the encouraging performance across sectors, businesses reported a number of ongoing challenges. Survey respondents cited electricity and energy shortages, higher fuel prices, rising labour costs and increased transportation expenses as factors putting pressure on profitability.
Some firms also expressed concern about the potential impact of escalating geopolitical tensions in the Middle East, warning of possible disruptions to supply chains and weaker export demand.
“The May PMI shows that Bangladesh’s economy moved onto a stronger expansionary path, with manufacturing, construction and services recording faster growth compared with April,” said Dr M Masrur Reaz, Chairman and Chief Executive Officer of Policy Exchange Bangladesh.
“Stronger domestic demand and increased business activity ahead of Eid appear to have supported broader-based expansion across major sectors,” he added.
The Bangladesh PMI is based on monthly surveys of more than 500 private-sector enterprises. The index was jointly developed by MCCI and Policy Exchange Bangladesh with support from the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management.
The latest reading suggests that economic activity strengthened considerably in May, with all four major sectors expanding simultaneously for the first time in several months, offering a positive signal for near-term growth prospects.
