Major industrial production in Bangladesh was buoyant, with August output in the current fiscal showing an annualized growth of 13.36 per cent, though demand for its exports marked a downturn in the West.
A marked momentum mainly in manufacturing of clothing, food products and beverages drives up the production indices, according to a latest official disclosure.
There are more industries on the growth trajectory, such as motor vehicles and trailers, furniture, leather, and leather products.
However, the country's major industrial production growth moderated below 4.0 per cent, year on year, in July, the first month of the fiscal year (FY) 2022-23.
And the growth of the manufacturing of textiles in August also fell to some extent, over 1.0 per cent.
The Bangladesh Bureau of Statistics (BBS) released Tuesday the date on industrial production which many think-tanks as well as policymakers use for framing financial and monetary policies.
The industrial sector contributes more than 35 per cent to the growth of country's GDP wherein such a vital segment of the economy has an around 23-percent share.
The manufacturing of wearing apparel index grew by more than 43 per cent in August (y-o-y) while the manufacture of beverages expanded by nearly 51 per cent during the period under review, the BBS data show.
Clothing manufacturers having more than 80-percent share in the country's total exports told the FE that the statistics prepared by the BBS were okay as they had good time up to October. They said they were now facing buy-order slump which is much less than expectation.
Syed Nazrul Islam, first vice president of BGMEA, says: "The August production was very good as we had received huge orders in March and April." Production reflects after three to four months.
"Actually our bad time started in November when the buyers are showing less interest following poor demand for clothing in Europe and the USA," Mr Islam told the FE, indicating the impacts of steep inflation in the export-destination countries amid the global dearth.
Aameir Alihussain, managing director of the BSRM Group, the largest rod maker in Bangladesh, told the FE that the production is okay but sales dropped in recent months as many shy away from making investment in the construction sector.
"Actually our production was huge up to July as there was adequate demand for our rods, but now it slowed down significantly."
He said August production was up to the mark.
Mr. Aameir said load-shedding and lower pressures of gas have been impacting them as well now.
He also said that they were facing trouble opening letter of credit, hitting their industry.
Md Kamruzzaman Kamal, a director of Pran-RFL Group, told the FE that production of beverages and other food products is now in full swing as the economy has fully reopened.
"Demand for food products has been surged in recent months," says Mr. Kamal, about the health of the food-processing industry.
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