TBT DESK: The February reading of the Bangladesh Purchasing Managers' Index (PMI) reached an expansion rate at 64.6 while all key sectors of the economy posted expansion readings.
This latest PMI reading was attributed to a slower rate of expansion posted by the sectors of construction and services, whereas the sectors of agriculture and manufacturing posted faster expansion rates. The Bangladesh Purchasing Managers' Index (PMI) was jointly released today by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB).
The PMI is a pioneering initiative that aims to offer timely and accurate insights into the country's economic health to help businesses, investors and policy makers take informed decision.
It was developed by MCCI and Policy Exchange, with support from UK Government and technical support from Singapore Institute of Purchasing & Materials Management (SIPMM), said a press release.
The agriculture sector posted a 5th month of expansion and at a faster rate. The sector posted a faster expansion rate for the indexes of new business, business activity, input costs, and order backlogs. The employment index posted a slower contraction.
The manufacturing sector posted a 6th month of expansion and at a faster rate. The sector posted faster expansion readings for the indexes of new orders, factory output, input purchases, and supplier deliveries.
Slower expansion rates were recorded for the indexes of new exports, finished goods, imports and employment. The order backlogs index posted a faster contraction rate.
The construction sector posted a 3rd month of expansion and at a slower rate. The sector posted slower expansion readings for the indexes of new business and construction activity, whereas the input costs index posted a faster expansion rate.
The employment index reverted to an expansion, and the order backlogs index posted a slower contraction rate.
The services sector posted a 5th month of expansion and at a slower rate.
The sector posted a slower expansion rate for the indexes of new business, business activity, and employment. The order backlogs index reverted to a contraction and the input costs index posted a faster expansion rate.
In terms of the future business index, however, all key sectors of agriculture, manufacturing, construction and services posted slower expansion rates.
"Bangladesh's PMI readings indicate sustained expansion for the fifth month, driven by continued growth in exports and seasonal uptick in agriculture, while construction and services recorded slower expansion.
M Masrur Reaz, chairman and CEO, Policy Exchange, said that business confidence remains weak due to sluggish demand, energy disruptions and continued protests."Sustained recovery depends on improved law and order, political consensus on election roadmap and expedited implementation of priority reforms," he added.