The Bangladesh Purchasing Managers’ Index in September increased by 6.2 points from the previous month to 49.7 suggesting that the economy is still in the contraction mode despite improvements in all key sectors.
This latest PMI reading was attributed to slower contraction readings posted by the sectors of agriculture, construction and services, whereas the manufacturing sector reverted to expansion.
The overall reading suggests gradual improvement in the economy compared to last month as things normalise, despite some disruptions and challenges facing the country.
However, the economy is still in contraction mode for three consecutive months now and far from vibrancy seen in the pre-July period. Â
The Metropolitan Chamber of Commerce and Industry, Dhaka and Policy Exchange Bangladesh successfully released the Bangladesh Purchasing Managers’ Index September report on Monday, said a press release on Tuesday.
The PMI is a pioneering initiative that aims to offer timely and accurate insights into the country’s economic health to help businesses, investors and policy makers take informed decision.
It was developed by the MCCI and Policy Exchange, with support from the UK Government and technical support from Singapore Institute of Purchasing and Materials Management.
The release said that the agriculture sector recorded a contraction for the third month but at a slower rate.
The sector posted a slower contraction rate for the indexes of new business, business activity and employment. Input costs index posted a slower expansion, whereas order backlogs index posted a faster contraction.
The manufacturing sector reverted to expansion after recording two months of contraction. The indexes of new orders and input purchases reverted to expansion, but new exports index reverted to contraction.
Faster contractions were recorded for indexes of factory output and employment, whereas slower contractions were recorded for those of finished goods and order backlogs.
Expansion readings were recorded for indexes of imports, input prices and supplier deliveries.
The construction sector recorded a contraction for the third month but at a slower rate. The new business index reverted to expansion, but both the indexes of employment and order backlogs reverted to contractions. Construction activity index posted a slower contraction, whereas input costs index posted a slower expansion.
The services sector recorded a contraction for the third month but at a slower rate. The new business index reverted to an expansion, whereas slower contraction readings were recorded for the indexes of business activity and employment.
The input costs index posted a slower expansion, whereas the order backlogs index reverted to contraction.
In terms of future business index, faster expansion rates were recorded for all key sectors of agriculture, manufacturing, construction and services.
Business sentiments, while guarded on recent disruptions in some industrial belts, were found to be optimistic about the future.
