Bangladesh Market Sees Slower Expansion in June

PMI falls 6.2 points to 63.9

Jasim Uddin Haroon
| Published: Jul 8, 2024 00:13:42

Bangladesh’s Purchasing Managers’ Index (PMI) fell 6.2 points in June from the previous month, posting slower growth at 63.9.
In May, the PMI index increased by 7.9 points compared to April and stood at 70.1.
PMI is an indicator of dominant economic trends in the manufacturing and services sectors.
This is a diffusion indicator that summarizes whether purchasing managers believe market conditions are expanding, staying the same, or contracting.
If it is above 50, the economy is growing, at 50 it is stagnating or remaining the same, and below 50 it is in recession.
The latest PMI reading follows a slowdown in growth across the key sectors of agriculture, manufacturing, construction and services.
The agricultural sector posted its sixth month of expansion in June after contracting in December last year.
The sector recorded slower growth rates in new orders, business activity, employment and input costs, but the order backlog recorded faster growth.
The employment rate recorded a third month of growth.
The manufacturing sector saw slower growth rates across key indicators of new orders, new exports, factory output, input purchases, employment and supplier deliveries.
Import and input price indices also saw slower growth, while the orders index rose faster.
The finished goods production index returned to decline after three months of growth.
The construction sector saw slower expansion rates for new business, construction activity, employment and input costs indices. The backlog of orders index posted a third consecutive month of decline.
The services sector saw slower growth in new business and business activity rates, while faster growth was seen in employment and input costs.
The order backlog indicator recorded a slower decline, with the order backlog index recording 6 months of uninterrupted declines.
In terms of the future interest indicator, a slower pace of expansion was recorded across all major sectors of agriculture, manufacturing, construction and services.
This important index was jointly developed by MCCI and Policy Exchange Bangladesh with technical support from SIPMM (Singapore Institute of Purchasing and Materials Management). It is funded by UK International Development.

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