11:41 am, Friday, 7 February 2025

Economy in contraction despite progress: PMI

The Bangladesh Purchasing Managers’ Index in September rose by 6.2 points from the previous month, reaching 49.7 indicating that the economy remained in contraction, although improvements were observed across all key sectors.

The recent PMI increase was primarily due to slower contraction in agriculture, construction, and services, while the manufacturing sector shifted back into expansion.

The overall reading suggests gradual improvement in the economy compared to last month as things normalise, despite some disruptions and challenges facing the country.

However, the economy is still in contraction mode for three consecutive months now and far from vibrancy seen in the pre-July period.

The Metropolitan Chamber of Commerce and Industry, Dhaka, along with Policy Exchange Bangladesh, successfully released the Bangladesh Purchasing Managers’ Index report for September on Monday, as stated in a press release on Tuesday.

The PMI is an innovative initiative designed to provide timely and accurate insights into the country’s economic health, aiding businesses, investors, and policymakers in making informed decisions.

It was developed by MCCI and Policy Exchange with support from the UK Government and technical assistance from the Singapore Institute of Purchasing and Materials Management.

According to the release, the agriculture sector experienced its third consecutive month of contraction, though at a slower pace.

This sector showed a reduced contraction in the indexes for new business, business activity, and employment. The input costs index reflected slower expansion, while the order backlogs index experienced a faster contraction.

In the manufacturing sector, expansion returned after two months of contraction.

The indexes for new orders and input purchases showed growth, but the new exports index fell back into contraction.

The sector saw faster contractions in factory output and employment, while contractions in finished goods and order backlogs were slower.

The construction sector also recorded its third month of contraction, albeit at a slower rate.

The new business index showed signs of expansion, while the employment and order backlogs indexes fell back into contraction.

The construction activity index posted a slower contraction, and the input costs index reflected slower expansion.

Similarly, the services sector contracted for the third month, but at a slower rate.

The new business index indicated expansion, while slower contractions were observed in business activity and employment indexes.

The input costs index showed slower expansion, and the order backlogs index reverted to contraction.

Looking ahead, the future business index indicated faster expansion across all key sectors: agriculture, manufacturing, construction, and services.

Despite cautious sentiments due to recent disruptions in some industrial areas, overall business outlook remains optimistic.

Economy in contraction despite progress: PMI

Update Time : 10:21:17 pm, Tuesday, 8 October 2024

The Bangladesh Purchasing Managers’ Index in September rose by 6.2 points from the previous month, reaching 49.7 indicating that the economy remained in contraction, although improvements were observed across all key sectors.

The recent PMI increase was primarily due to slower contraction in agriculture, construction, and services, while the manufacturing sector shifted back into expansion.

The overall reading suggests gradual improvement in the economy compared to last month as things normalise, despite some disruptions and challenges facing the country.

However, the economy is still in contraction mode for three consecutive months now and far from vibrancy seen in the pre-July period.

The Metropolitan Chamber of Commerce and Industry, Dhaka, along with Policy Exchange Bangladesh, successfully released the Bangladesh Purchasing Managers’ Index report for September on Monday, as stated in a press release on Tuesday.

The PMI is an innovative initiative designed to provide timely and accurate insights into the country’s economic health, aiding businesses, investors, and policymakers in making informed decisions.

It was developed by MCCI and Policy Exchange with support from the UK Government and technical assistance from the Singapore Institute of Purchasing and Materials Management.

According to the release, the agriculture sector experienced its third consecutive month of contraction, though at a slower pace.

This sector showed a reduced contraction in the indexes for new business, business activity, and employment. The input costs index reflected slower expansion, while the order backlogs index experienced a faster contraction.

In the manufacturing sector, expansion returned after two months of contraction.

The indexes for new orders and input purchases showed growth, but the new exports index fell back into contraction.

The sector saw faster contractions in factory output and employment, while contractions in finished goods and order backlogs were slower.

The construction sector also recorded its third month of contraction, albeit at a slower rate.

The new business index showed signs of expansion, while the employment and order backlogs indexes fell back into contraction.

The construction activity index posted a slower contraction, and the input costs index reflected slower expansion.

Similarly, the services sector contracted for the third month, but at a slower rate.

The new business index indicated expansion, while slower contractions were observed in business activity and employment indexes.

The input costs index showed slower expansion, and the order backlogs index reverted to contraction.

Looking ahead, the future business index indicated faster expansion across all key sectors: agriculture, manufacturing, construction, and services.

Despite cautious sentiments due to recent disruptions in some industrial areas, overall business outlook remains optimistic.