The latest PMI report showed stronger growth in manufacturing and services, while the construction sector returned to expansion and agriculture continued to grow, albeit at a slower pace.
Economic activity in Bangladesh accelerated in May, with the purchasing managers’ index rising by 8.2 points to 62.8 month on month, indicating a faster pace of expansion across all major sectors.
The manufacturing sector posted its second consecutive month of expansion and registered faster growth, supported by stronger increases in new orders, export orders, input purchases and employment.
The manufacturing sector posted its second consecutive month of expansion and registered faster growth, supported by stronger increases in new orders, export orders, input purchases and employment.
Growth in factory output and input prices moderated, while imports and order backlogs returned to expansion, according to domestic media reports.
Contractions in finished goods inventories persisted, though supplier delivery performance improved.
The agriculture sector recorded its ninth consecutive month of expansion. Business activity and employment in the sector grew at a stronger pace, although growth in new business and input costs slowed. Order backlogs, however, remained in contraction territory.
Despite the improved performance, businesses across major sectors reported challenges arising out of electricity and energy shortages, rising fuel prices, higher labour costs and increasing transportation expenses.
Many firms said power disruptions continued to affect productivity and production schedules, while escalating input costs squeezed profit margins.
Respondents also expressed concern about the potential economic fallout from ongoing geopolitical tensions in the Middle East, citing risks of higher fuel prices, supply chain disruptions and weaker export demand.
Fibre2Fashion News Desk (DS)
