The Purchasing Managers’ Index (PMI) for Bangladesh recorded a notable increase in May, reaching 58.9, marking a 6.0-point rise from the previous month.

The data, released jointly by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) on June 15, reflected a faster rate of expansion in the country’s economic activity.

This pioneering PMI initiative, developed by MCCI and PEB with support from the UK Government and technical backing from the Singapore Institute of Purchasing & Materials Management (SIPMM), provides timely and accurate insights into the performance of key sectors, offering a vital tool for businesses, investors and policymakers.

The rise in May’s PMI score is largely attributed to stronger performance in the agriculture, manufacturing and services sectors.

Each of these sectors recorded accelerated growth, while the construction sector remained stagnant with no change in expansion rate from the previous month.

The agriculture sector registered its eighth consecutive month of expansion, with gains across all key indicators.

New business, business activity, employment and input costs all recorded faster growth, while the order backlogs index shifted back into expansion territory.

Similarly, the manufacturing sector notched its ninth straight month of expansion, also at an increased rate. All indices, except for the order backlogs index, showed positive growth.

The order backlogs index, although still contracting, did so at a slower pace, continuing a ten-month trend of decline.

The construction sector reported its sixth month of expansion, maintaining the same overall rate as in April.

While construction activity itself saw a faster expansion, input costs rose more slowly. Both new business and employment indicators contracted, though the order backlogs index returned to expansion.

The services sector also maintained strong momentum, posting its eighth consecutive month of expansion, with faster growth in new business and input costs.

The employment index expanded at a slower rate, while the business activity and order backlogs indices returned to expansion.

On the outlook front, the Future Business Index showed mixed trends. While agriculture is expected to expand more rapidly, the manufacturing, construction, and services sectors all recorded slower expected growth.

Commenting on the findings, Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said: ‘The latest PMI readings indicate that the overall Bangladesh economy grew at a faster rate, riding on the export-led manufacturing buoyancy and uptake in agriculture and its supply chain ahead of the Eid festival. The construction sector, however, remains the only sector without any growth in expansion.’