Despite a small decrease from the previous month of March, the country’s economy remains on the expansion track overall, indicating the country's economic health for further private investment.
The latest Purchasing Managers’ Index (PMI) readings, a leading economic indicator, indicate the resilience of Bangladesh economy in the face of inflationary pressure and uncertainties stemming from ongoing geopolitical conflicts, specifically the unrest in middle-east.
Bangladesh April PMI recorded a slower expansion at 62.2, a slightly decreased by 2.1 from 64.3 in March, said Policy Exchange Bangladesh (PEB) during his presentation at the Launching of the PMI Report for Bangladesh event, jointly organised by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and PEB at the MCCI’s Gulshan office in the capital.
He said, “Manufacturing and agriculture posted faster expansion readings, while agriculture recorded the four month of expansion after having posted a contraction in December last year.
“The sector posted a faster expansion rate for the indexes of new business, business activity, and input costs, but posted a slower expansion rate for the order backlog index.”
He added, “The manufacturing sector posted a faster expansion rate for the indexes of new orders, new exports, factory output, input purchases and supplier deliveries but the employment index posted a slower expansion.”
However, the country's government prepared index of industrial production of manufacturing enterprises shows a decreasing trend in February this year while it compares to January at large and small, macro and micro scale enterprises.
In contrast, the construction sector posted a slower expansion rate for the indexes of new business, construction activity, and input costs. However, the employment index posted a faster expansion rate. The order backlog index reverted to a contraction reading.
The services sector posted a slower expansion rate for the indexes of new business and business activity, employment, and input costs.
The order backlog index posted a faster contraction, and the order backlog index had posted 4 months of consecutive contractions after posting an expansion in December last year.
In terms of the future business index, faster expansion rates were recorded for the sectors of agriculture, manufacturing, and construction, whereas the services sector posted a lower expansion rate, it reads.
M Masrur Reaz said, “This PMI index is a forward looking economic indicator which helps understand the direction in which the economy is headed.
Speaking as the chief guest, State Minister for Finance Waseqa Ayesha Khan stressed on data quality and reliability.
She said, “Bangladesh needed efficient resource management, and that required correct data but we must carefully decide which data will be used and ensure data’s integrity.”
“PMI data will help make data-driven and better decisions in private sector investment and this insight into the economy would help the government to make the right policy decision too.”
MCCI President Kamran T Rahman emphasized the report’s importance as a vital tool for government and private sector decision-making and said that the PMI’s ability to predict economic shifts had the potential to optimize operations and potentially augment the profitability of businesses in the country.
Bangladesh PMI was initiated by the UK government. Covering the key economic sectors, it is based on data compiled from monthly surveys of over 500 private sector enterprises.
The event was attended by Deputy British High Commissioner and Development Director to Bangladesh Matt Cannell as the Special Guest.
