PMI drops by 9.9 points in June

Bangladesh’s Purchasing Managers’ Index (PMI) for June has recorded a sharp slowdown, falling 9.9 points from May to settle at 52.9, signaling a slower pace of expansion across key sectors of the economy, according to a report released on Tuesday.

The Bangladesh PMI, jointly compiled by the Metropolitan Chamber of Commerce and Industry (MCCI), and Policy Exchange Bangladesh (PEB), is developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM).

The index is designed to provide timely and reliable insights into the country’s  economic health to help businesses, investors and policymakers make informed decisions.

The agriculture sector recorded its tenth consecutive month of expansion in June, although growth moderated from May.

New business, business activity, employment and input costs all continued to expand, while the order backlogs index remained in contraction for the second straight month.

The manufacturing sector returned to contraction after two months of expansion, dragged down by weaker new orders, new exports, employment, supplier deliveries and order backlogs.

Factory output, input purchases and imports continued to grow, though at a slower pace, while input prices accelerated and the finished goods index swung back into expansion.

The construction sector also reverted to contraction after posting expansion in May, with new business, construction activity and employment all falling back. Input costs and order backlogs, however, continued to expand at a faster pace within the sector.

The services sector expanded for the 21st consecutive month in June, though growth slowed across new business, business activity, employment and input costs, while the order backlogs index contracted at a faster rate, the report showed.

Several respondents also recommended maintaining a representative and high-quality respondent panel to further enhance the reliability of the Bangladesh PMI.
The report was signed by Farooq Ahmed, Secretary-General and CEO of MCCI, and M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.