At 52.9, Bangladesh’s PMI stays in expansion territory in June

Bangladesh’s purchasing managers’ index (PMI) stood at 52.9 in June this year, indicating continued growth in overall economic activity despite a slower pace month on month (a drop of 9.9 points).The agriculture sector posted its tenth consecutive month of expansion, while the manufacturing and construction sectors saw a slower pace of activity in the month highlighting mounting pressure from higher production costs, weaker demand and seasonal disruptions.

But the PMI report, jointly released by the Metropolitan Chamber of Commerce and Industry and Policy Exchange Bangladesh, expressed optimism about future performance.

Bangladesh’s purchasing managers’ index (PMI) stood at 52.9 in June this year, indicating continued growth in overall economic activity despite a slower pace month on month.
The agriculture sector posted its tenth consecutive month of expansion, while the manufacturing and construction sectors saw a slower pace of activity in the month, but the PMI report was optimistic about future performance.

The future business index projects that agriculture, construction and services will continue to expand in the coming months, while the manufacturing sector is expected to return to expansion.

The weaker performance in the manufacturing was driven by declines in new orders, export orders, employment, supplier deliveries and order backlogs. Although factory output, input purchases and imports continued to expand, their growth slowed. Meanwhile, input prices rose at a faster pace, while the finished goods index returned to expansion.

Bangladesh’s PMI initiative is backed by the UK government, with technical assistance from the Singapore Institute of Purchasing and Materials Management.

Fibre2Fashion News Desk (DS)