Bangladesh’s economy showed signs of slowing down in February, as the country’s Purchasing Managers’ Index (PMI) recorded a slight dip, reaching 64.6. Despite the slowdown, the index still indicated economic expansion, with all major economic sectors showing growth during the eighth month of the fiscal year.
The Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB) released the PMI report for February on Sunday. The PMI index provides a timely and accurate analysis of the country’s economic condition, allowing businesses, investors, and policymakers to make informed decisions.
In February, the PMI index decreased by 1.1 points compared to the previous month, reflecting a slower pace of expansion. This slowdown was attributed to a reduction in growth in the construction and services sectors, while the agriculture and manufacturing sectors experienced faster expansion.
The agriculture sector continued its growth for the fifth consecutive month, marking the highest expansion compared to other sectors. The manufacturing sector maintained its growth for six months, with rapid expansion in new orders, production, input purchases, and supplier deliveries. However, new exports, finished products, imports, and employment saw slower growth.
The construction sector maintained growth for three months, but at a slower pace. The services sector also showed a slowdown in its growth, maintaining expansion for five months but at a reduced rate.
Overall, the future business indicators for agriculture, manufacturing, construction, and services recorded slower expansion.
Liberty News’ economic correspondent states that Mashrur Riaz, Chairman and CEO of Policy Exchange Bangladesh, commented, “The PMI index for Bangladesh has shown sustained expansion for five consecutive months, driven by export growth and seasonal agriculture growth. However, the construction and services sectors have seen slower expansion due to weak demand, energy shortages, and ongoing protests, which have decreased business confidence. Sustainable recovery depends on improvements in law and order, political consensus on the electoral roadmap, and the rapid implementation of key reforms.”
LND/BG
