The Bangladesh Purchasing Managers’ Index (PMI) – a prevailing direction indicator of economic trends in the manufacturing and service sectors – for May has increased by 7.9 points compared to the previous month, reaching 70.1.
This latest PMI reading was attributed to a faster expansion rate in all key sectors of agriculture, manufacturing, construction, and services.
Latest PMI readings indicate continued expansion in economic activities, with important sectors showing a positive trend despite global uncertainties. This aligns with the expansion readings across most of the Asian region.
The global markets are concerned about possible escalation of on-going geopolitical conflicts and the macroeconomic risk of high inflation. Metropolitan Chamber of Commerce & Industry (MCCI) in partnership with Policy Exchange Bangladesh prepared this index.
A PMI reading above 50 indicates that the sector of the economy is generally in an “expanding” phase. A reading of 50 suggests “no change” compared to the previous month, while a reading below 50 indicates a “contraction.”
The business index shows that the manufacturing, construction, and services sectors expanded at a faster rate, while the agriculture sector had a slower expansion.
After a contraction in December, the agriculture sectors have been growing for the past five months. There was a faster growth in new businesses, activities, employment, input costs, and order backlogs. The employment index saw its second month of expansion.
In the manufacturing sectors, things picked up with faster growth in new orders, exports, output, input purchases, and supplier deliveries. However, employment didn’t grow as quickly. Finished goods, imports, input prices, and order backlog also expanded faster.
There was faster growth in the construction sectors including in new businesses, activities, employments, and input costs. However, the order backlog contracted for the second month.
Activities, new businesses, employment, and input costs grew faster in the services sector. The order backlog, which had been contracting for the past five months, started contracting more slowly following an expansion in December.
