Bangladesh PMI improves to 49.7 in September
Economy still in contraction mode for three consecutive months
The Bangladesh Purchasing Managers' Index (PMI), which reflects the pace of economic activity, rose for the second consecutive month in September to 49.7, after dropping below 37 in July.
Despite this improvement, three of the four major sectors still showed signs of contraction, suggesting the economy remains in a slow contraction phase.
An index above 50 signals economic growth, while below 50 indicates contraction, according to the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh, who monitor business procurement levels.
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The Bangladesh PMI is supported by the UK Government, with technical assistance from the Singapore Institute of Purchasing & Materials Management.
MCCI stated that the latest PMI reading is due to slower contraction in agriculture, construction, and services sectors, while the manufacturing sector returned to expansion. Though the economy shows gradual improvement compared to last month, it has been in contraction for three consecutive months and remains far from its pre-July vibrancy.
In September, the manufacturing sector PMI rose to 52.6 from 47.7 in August, while it was over 70 in May. Agriculture improved to 47 from 38.7, having reached nearly 80 in May.
Construction increased to 46 from below 40 in August, while it was around 70 in May.
The services sector, after two months of recovery, reached 49.4, compared to around 60 earlier this year.
Future business outlooks for agriculture, manufacturing, construction, and services show faster expansion, with cautious optimism despite recent disruptions in some industrial areas, MCCI added.
