The Bangladesh Purchasing Managers' Index (PMI) declined by 6.2 points in June from the previous month to record a slower expansion at 63.9.
In May, the PMI had increased by 7.9 points from April to 70.1.
The PMI is an indicator of prevailing economic trends in the manufacturing and services sectors.
It is a diffusion index that summarises whether the market conditions are expanding, staying the same, or contracting, as viewed by purchasing managers.
If it is above 50, the economy is expanding, at 50 it is staying at the same level or stagnation, and below 50 indicates contraction.
This latest PMI reading was attributed to a slower expansion rate in all key sectors of agriculture, manufacturing, construction, and services.
The agriculture sector recorded the sixth month of expansion in June after having posted a contraction reading in December last year.
The sector posted a slower expansion rate for the indexes of new business, business activity, employment, and input costs, but the order backlog index posted a faster expansion rate.
The employment index posted a third month of expansion.
The manufacturing sector posted a slower expansion rate for the key indexes of new orders, new exports, factory output, input purchases, employment, and supplier deliveries.
Slower expansion rates were also recorded for the indexes of imports and input prices, whereas the order backlog index posted a faster expansion rate.
The finished goods index reverted to a contraction after posting three months of expansion readings.
The construction sector posted a slower expansion rate for the indexes of new business, construction activity, employment, and input costs. The order backlog index posted a third month of contraction.
The services sector posted a slower expansion rate for the indexes of new business and business activity, whereas faster expansion rates were recorded for the indexes of employment and input costs.
The order backlog index posted a slower contraction, and the order backlog index had posted 6 months of consecutive contractions.
In terms of the future business index, slower expansion rates were recorded for all key sectors of agriculture, manufacturing, construction, and services.
This vital index has been developed jointly by MCCI, and Policy Exchange Bangladesh with technical support from SIPMM (Singapore Institute of Purchasing and Materials Management). It is being funded by UK International Development.
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