The overall growth of business sectors in Bangladesh slowed down in December 2024 compared to November, according to the Purchasing Managers’ Index (PMI).

The Metropolitan Chamber of Commerce and Industry, Dhaka, and Policy Exchange Bangladesh released the December PMI report on Tuesday.

The PMI score fell by 0.5 points to 61.7 in December, compared with November. This indicates that the economy continued to grow for the third consecutive month, albeit at a slower pace, following three months of contraction.

The PMI is measured on a scale of 0 to 100. A score above 50 indicates growth, below 50 signals a decline, and exactly 50 indicates no change in activity.

The report noted that Bangladesh was still facing numerous challenges as it worked toward political stability and economic growth.

The slower overall growth in December was primarily due to reduced progress in the agriculture and services sectors, which had expanded more quickly in the previous month.

The agriculture sector continued to grow for the third month, though at a slower pace. Business activity expanded more slowly, and new business orders declined. However, the employment situation improved, costs increased at a faster rate, and backlogs of work diminished at a slower pace.

The manufacturing sector grew for the fourth consecutive month and expanded more rapidly in December.

New orders, exports, production, purchases, imports and supplier deliveries all improved.

However, the growth of finished goods slowed, employment declined, and backlogs of work reduced more quickly.

The construction sector also returned to growth after a period of fluctuation. New business and construction activity accelerated, though job growth was slower.

Material costs rose, and backlogs of work diminished at a slower pace.

The services sector grew for the third month, but its expansion also slowed. New business, overall activity, and employment all grew more slowly.

Costs fell for the first time, but backlogs of work increased at a faster rate.

The report suggested that business growth in key areas such as manufacturing, construction and services was expected to pick up, while agriculture may experience slower growth.

The report highlighted that, while overall growth continued, some sectors like agriculture and services saw a slowdown.

Manufacturing and construction performed better, but the economy continues to face challenges, it concluded.