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Friday | October 09, 2026 | Dhaka

PMI in September falls to 48.6 as economic activity contracts

Agriculture remains resilient as manufacturing, construction, services weaken
 Business Report
 Published: 12:01 AM, 09 October 2026

Bangladesh’s overall economic activity in September contracted slightly as the Purchasing Managers’ Index (PMI) fell 1.3 points, with manufacturing, construction and services weakening while agriculture continued to expand.

According to the Bangladesh Purchasing Managers’ Index (PMI), released jointly by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) , the overall PMI in September stood at 48.60 which was 49.9 in August. A reading above 50 indicates expansion, while one below 50 indicates contraction.

The agriculture sector recorded its thirteenth consecutive month of expansion, although the index declined by 1.3 points to 55.2. New business, business activity and employment recorded slower expansion, while input costs continued to expand strongly despite slight reduction. Order backlogs remained in contraction, but at a slower rate.

The manufacturing sector declined by 2.6 points to 44.8, recording contraction. New orders, new export orders, output, stocks of input purchases and finished goods, and imports continued to contract at a faster rate. Employment reverted to a marginal expansion, while input prices continued to rise.

Order backlogs recorded a strong contraction, while supplier delivery times recorded a slower expansion.

Construction recorded a PMI of 48.5, while services stood at 49.0. Both sectors remained close to the expansion threshold, suggesting that economic activity could regain momentum as demand conditions improve, report shows.

The services sector, in particular, recorded only a marginal contraction, indicating that the sector remains relatively close to returning to expansion.

The services sector recorded a second consecutive month of marginal contraction, declining by 0.2 points to 49.0. New business and business activity reverted to contraction, while employment experienced slower contraction. Input costs expanded strongly while order backlogs remained in contraction.

Looking ahead, the Future Business Index indicates expansion across all four sectors, reflecting cautious optimism regarding business conditions, said the report.

Dr. M Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh said “The September PMI shows that Bangladesh’s economic dynamism remains under pressure, as weakness in manufacturing, construction and services weighed on overall performance. Agriculture’s continued expansion provides resilience, while slightly positive expectations across all sectors offer a basis for recovery. “

Strengthening domestic and export demand, ensuring reliable energy supply, easing financing constraints and containing cost pressures will be important to restore momentum, he added.