The overall growth of business sectors in Bangladesh slowed down in December 2024 compared with that in November, according to Purchasing Managers’ Index.
The Metropolitan Chamber of Commerce and Industry, Dhaka and Policy Exchange Bangladesh released the December PMI report on Tuesday.
The PMI score dropped by 0.5 points to 61.7 in December compared to November.
This shows that the economy continued to grow for the third straight month, though at a slower pace, after shrinking for three months previously.
The PMI is measured on a scale of 0 to 100. A score above 50 means growth, that below 50 means a decline and exactly 50 means no change in activity.
The report noted that Bangladesh was still facing many challenges as it worked toward political stability and economic growth. The slower overall growth in December was mainly due to a slower progress in agriculture and services sectors, which had grown faster in the previous month.
The agriculture sector continued to grow for the third month but at a slower pace. Business activity grew more slowly and new business orders decreased. However, employment situation improved and costs rose at a faster rate, while backlogs of work shrank at a slower pace.
The manufacturing sector expanded for the fourth month and grew even faster in December. New orders, exports, production, purchases, imports and supplier deliveries improved. However, finished goods’ growth slowed, employment decreased and backlogs of work shrank faster.
Construction sector also returned to growth after a period of ups and downs. New business and construction activity grew faster, though job growth was slower. Material costs increased, while backlogs of work shrank more slowly.
The services sector grew for the third month, but its growth was also slower. New business, overall activity and employment all grew more slowly. Costs fell for the first time, but backlogs of work increased faster.
The report suggested that future business growth was expected to be faster in key areas like manufacturing, construction and services, but agriculture may grow more slowly.
The report highlighted that while overall growth continued, it slowed down in some sectors like agriculture and services. Manufacturing and construction performed better and the economy is still facing challenges, it noted.
