June PMI records slower expansion

All key sectors of the economy recorded slower expansion readings

Bangladesh’s June PMI reading fell 6.2 points from 70.1 in May, posting a slower reading of 63.9, driven by slower growth across the board in the major sectors of agriculture, manufacturing, construction and services.

All key sectors of the Bangladesh economy grew at a slower pace, according to the June PMI report. Continued congestion at the Chattogram port also added upward pressure on freight costs and delayed shipments.

The situation was further worsened by the Eid-ul-Azha holidays and unfavourable weather conditions, according to a press release issued by the Metropolitan Chamber of Commerce and Industry (MCCI) on Sunday.

The agriculture sector posted its sixth straight month of expansion after contracting in December last year. The sector saw slower expansion rates for the indexes of new businesses, business activity, employment and input costs, but the backlog of orders posted a faster pace of expansion.

The employment rate reportedly 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.

The import and input price indices also saw slower expansion, while the backlog of orders saw a faster expansion. The finished goods index returned to decline after posting three straight months of expansionary readings.

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 six 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.