Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The country's Purchasing Managers’ Index (PMI) fell sharply in June 2025, signalling a notable slowdown in industrial and business activity, according to the latest data released on Monday.
The index declined to 53.1 in June from 58.9 in May, reflecting a 5.8-point drop, the steepest monthly decline in over a year.
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 a reading below suggests contraction and at 50 the economy is neither expanding nor contracting. The scale is 0 to 100.
Despite remaining above the neutral 50-point mark, the sharp drop indicates weakening momentum in new orders, production, and supplier deliveries.
Over the past year, the PMI has shown considerable volatility.
It peaked at over 70 points in mid-2024 before plunging to below 40 by July that year. The index then rebounded steadily through early 2025 but appears to be losing steam again heading into the second half of the year.
Analysts attribute the recent dip to softer domestic demand, rising input costs, and policy uncertainty ahead of fiscal adjustments.
“The economy is growing, but headwinds are clearly intensifying,” said Dr. Masrur Reaz, chairman and CEO of Policy Exchange of Bangladesh.
He said the reading has slowed in June by adding the construction sector for the first time in eight months contracted.
Unless the PMI rebounds in the coming months, it may signal a broader economic deceleration, prompting potential policy responses to revive investor and consumer confidence.
jasimharoon@yahoo.com