Bangladesh’s PMI rises to 57.8 as manufacturing powers July expansion

Bangladesh’s Purchasing Managers’ Index (PMI) has risen to 57.8 points in July from 52.9 in June, signalling a stronger expansion in economic activity.

The index, jointly published monthly by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB), tracks activity across agriculture, manufacturing, construction and services.

A PMI reading above 50 indicates expansion, while below 50 signals contraction. The July reading therefore points to further economic momentum.

“July’s PMI indicates stronger expansion in economic activity, driven primarily by a strong recovery in manufacturing. Despite significant improvement, construction remains in slight contraction,” MCCI said in a statement.

Manufacturing recorded the strongest expansion, with its PMI jumping 16.6 points to 65.4.

Services rose 1.4 points to 56, extending its expansion streak to 22 months, while agriculture remained in expansion for an 11th consecutive month at 55.2, despite falling 9.6 points.

Construction improved by 9.1 points to 49.3 but remained just below the expansion threshold.

New business and overall activity expanded, while employment slipped slightly into contraction. Input costs and outstanding orders also remained under pressure.

PEB Chairman Masrur Reaz said the July PMI pointed to a strengthening economy, led by manufacturing’s recovery and continued expansion in agriculture and services.