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Bangladesh saw its Purchasing Managers' Index (PMI) soar 8.4 points to hit 61.5 in July over the previous month -- indication that overall economy posted expansion.
The PMI was recorded at 53.1 in June last.
Such rise in the PMI reading was attributed to a faster expansion for the indices of manufacturing and services sectors, a slower expansion rate for the agriculture sector, and a reversion of the construction sector to an expansion reading.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) released the July PMI report Thursday.
PMI is a key economic indicator derived from monthly surveys of private- sector firms, offering insights into manufacturing-and services-sector trends.
A PMI above 50 indicates expansion while the reading below suggests contraction. On the other hand, a PMI 50 indicates a standstill--the economy is neither expanding nor contracting. The scale is 0 to 100.
According to a press release, the country's agriculture sector posted its 10th month of expansion, but at a slower rate.
The sector posted slower expansion for the indices of new business, business activity, and input costs, but the order-backlogs index posted a faster expansion, it mentions.
On the other hand, the employment index posted a contraction reading for a second month in a row--and "at a faster rate".
The manufacturing sector posted its 11th month of expansion, and at a faster rate, too, the release reveals.
The sector posted expansion readings for the indices of new orders, factory output, input purchases, finished goods, imports, input prices, supplier deliveries, and order backlogs. Both the indexes of new exports and employment posted contraction readings.
The construction sector reverted to an expansion reading after posting a first-time contraction reading in the previous month, posting expansion readings for the indexes of new business, construction activity, input costs, and order backlogs.
The services sector posted its 10th-month expansion, and at a faster rate, it mentions, adding that the sector posted expansion readings for the indices of new business, business activity, employment, input costs, and order backlogs.
In terms of the future business index, slower expansion rates were recorded for the indexes of agriculture, manufacturing, and services sectors, whereas the construction sector posted a faster expansion, according to the release.
"The latest PMI readings indicate that the overall Bangladesh economy expanded in July, primarily driven by growth in services and manufacturing sectors- with exports hitting an all-time monthly high of $4.77 billion," according to Dr M Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh.
The economist further says: "The agricultural sector, however, recorded slower expansion in July, reflecting the lean period and monsoon disruptions."
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