Output of the country's large and medium-scale manufacturing industries has continued to prevail in slower path, according to the official statistics.
The Quantum Index of Medium and Large-Scale Manufacturing Industry, released last week by the Bangladesh Bureau of Statistics (BBS), showed the industrial output trend for the first four months (July-October) of the current fiscal year 2015-16 (FY'16).
Due to a time lag in preparing the index, the data on industrial output for only four months is available, although seven and half months of the FY'16 have already elapsed.
It showed that average index of manufacturing output in the four months stood at 248.25 while the index was 228.28 during the same period of FY15.
Thus manufacturing output grew by 8.75 per cent during the period under review compared to the same period of FY'15. The growth rate was 11.6 per cent in the July-October period of the last fiscal year compared to the same period o FY'14.
The quantum index declined significantly during the period between June and July, but it bounced back in August. Again, it declined gradually in September and October.
In fact, output of the industrial sector came down to the lowest level in October during eight months since April.
Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka in its latest quarterly economic review opined that the manufacturing activities showed 'signs of regaining momentum, thanks to the apparently stable political situation, which earlier had badly affected production'.
At the same time, the chamber mentioned that the performance of industrial activity was not up to the mark 'mainly due to shortage of power and gas, bank's high interest rate and also political uncertainty.'
Production of electricity, however, increased slightly in October after it dropped significantly in September last year.
Output of mining sector also showed an upward trend during the period under review.
BBS constructs Quantum Index of Industrial Production (QIIP), taking three sectors into consideration. These are manufacturing, mining and electricity.
Of the manufacturing, there are 21 sub-sectors. The major sub-sectors are textiles, wearing apparel, food products, leather, pharmaceuticals and chemicals.
Mohammed Hatem, former vice-president of BKMEA, said there was a slowdown in manufacturing output mainly due to lack of investment in expansion of the industries.
"Many knitwear and textile manufacturers couldn't go for expansion as there is big uncertainty over gas connection," he told with the FE.
"Again, in last two years, garment factory owners mostly invested in improvement of safety and factory working condition. Thus, a slowdown in manufacturing output is unavoidable."
The business leader also said the government should prioritise industrialisation and supply gas to the manufacturing factories instead of fertiliser one.
To assess movement of industrial production in Bangladesh, data are collected from state-owned manufacturing enterprises and major manufacturing enterprises in the private sector on a monthly basis.
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