The purchasing managers’ index increased in August by 6.6 points, but the economic indicators of August were on the downward trend, according to the latest reading of the PMI index published by the Metropolitan Chamber of Commerce and Industry.
In a focus group discussion with reporters at the organisations office in the capital Dhaka, the MCCI said that the economic indicators were getting better after the interim government was formed following the ousting of the former Awami League-led government by a mass uprising.
The August reading of the PMI index for Bangladesh stood at 43.5 points, while the July reading of the index dropped a hefty 27 points from the previous month to record a sharp contraction at 36.9, said the MCCI.
Farooq Ahmed, secretary general and chief executive officer of the organisation, said in his keynote presentation that supply situation was severely disrupted due to prolonged agitation and violent situation during July-August.
The situation in agriculture, manufacturing, construction and services deteriorated, he added.
The MCCI said that due to the ongoing labour unrest in the country, the vandalism and arson of factories in the past three weeks had caused a loss of an estimated Tk 5,000 crore.
Kamran T Rahman, president of the MCCI, said that more than one hundred factories were attacked across the country and about two hundred factories were forced to shut down.
He said that the estimation was prepared by talking to businesses of various sectors.
The MCCI said that the manufacturing sector recorded a contraction for the second month but at a slower rate, while the construction sector recorded a contraction for the second month at a faster rate.
The agricultural and the services sector also recorded a contraction for the second month at a slower rate.
In terms of the future business index, the chamber said that slower expansion rates were recorded for the key sectors of manufacturing, construction and services.
The PMI index is a survey-based indicator of the country’s business conditions.
This index is usually published every month based on the data compiled from monthly surveys of over 500 private sector enterprises.
The PMI index is measured on a scale of zero to 100. Compared to the previous month, a score above -50 indicates an expansion of the economy and a score below -50 indicates a contraction. And if the score is 50, it means that there has been no change in the respective sector in that month.
