Dhaka: Bangladesh’s August reading of the Purchasing Managers’ Index dropped 7. 9 points to 49. 9, signaling marginal economic contraction
According to the latest report released on Tuesday, the decline was driven mainly by a slowdown in manufacturing and services, both posting marginal contraction readings.
However, agriculture continued to expand, while the construction sector reverted to expansion, it added.
A PMI reading above 50 indicates expansion from the previous month, while one below 50 signals contraction.
The PMI, jointly prepared by the Metropolitan Chamber of Commerce and Industry and Policy Exchange Bangladesh, covers more than 500 private sector firms across agriculture, manufacturing, construction, and services.
“The August PMI reading of 49. 9 indicates that Bangladesh’s economic activity remained broadly near the neutral threshold, despite temporary pressures on manufacturing and services,” said M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, in a statement.
He said that the moderation in manufacturing partly reflects weaker monthly exports and temporary energy disruptions associated with LNG infrastructure maintenance.
Looking ahead, improved energy availability, stronger export demand and supportive measures to restore business confidence can help the economy regain momentum and place it on a firmer growth trajectory.
