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The August reading of the Bangladesh Purchasing Managers’ Index (PMI) increased by 6.6 points from the previous month to record a slower contraction at 43.5.
This latest PMI reading was attributed to contraction readings posted by all key sectors of agriculture, manufacturing, construction, and services.
The agriculture sector recorded a contraction for the second month but at a slower rate.
The sector posted a slower contraction rate for the indexes of new business, business activity, and employment.
The input costs index posted a slower expansion, whereas the order backlog index reverted to a contraction.
The information was revealed at a views exchange meeting with journalists at an auditorium in the capital on Sunday.
Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and Policy Exchange Bangladesh (PEB) jointly organized the event.
The manufacturing sector recorded a contraction for the second month but at a slower rate.
The sector posted a slower contraction rate for the indexes of new orders and factory output, whereas the indexes of employment, input purchases, finished goods, and order backlog reverted to a contraction. The indexes of new exports, imports, and supplier deliveries reverted to an expansion.
The construction sector recorded a contraction for the second month and at a faster rate. The sector posted a faster contraction in the indexes of new business and construction activity.
The indexes of input costs and order backlog remained on the expansion track, and the employment index reverted to an expansion.
The services sector recorded a contraction for the second month but at a slower rate. The sector posted a slower contraction in the indexes of new business and business activity, and a faster contraction in the employment index. The input costs index posted a slower expansion, whereas the order backlog index reverted to an expansion.
In terms of the future business index, slower expansion rates were recorded for the key sectors of manufacturing, construction, and services, whereas the agriculture index recorded a faster expansion rate.
The latest PMI readings Indicate improvements in the general economy whilst the interim government works tirelessly to rebuild political stability and ensure normal business operations across sectors following the fall of the Awami League regime.
Anecdotal evidence suggests that companies are cautiously optimistic about the economic outlook and the future business index continues to record expansion readings for all key sectors of the economy.