The economy witnessed expansion in December 2024, though at a slower pace than the previous couple of months, as reflected in Bangladesh's Purchasing Managers' Index (PMI).
In December 2024, the PMI stood at 61.7, 0.5-point down from November's 62.2, according to the latest reading released Tuesday.
A PMI reading above 50 indicates that the sector/ economy is generally 'expanding'. A reading of 50 indicates 'no change' compared to last month, while a reading below 50 indicates a 'contraction'.
Despite this dip, all key sectors of the economy - agriculture, manufacturing, construction, and services - continued to post expansionary readings, highlighting resilience amid challenges, says a press release.
Agriculture sector recorded its third consecutive month of expansion, albeit at a slower rate.
New business contracted, and business activity grew at a decelerated pace. Employment rebounded to expansion, while input costs rose faster in the sector.
Manufacturing sector marked its fourth straight month of expansion with a faster growth rate. Significant upticks were noted in new orders, exports, factory output, and supplier deliveries. Employment in the manufacturing sector, however, returned to contraction, and order backlogs contracted more rapidly.
Construction sector reverted to expansion after volatility in prior months.
New business and activity growth accelerated, though employment growth slowed. Input costs turned expansionary, while order backlogs contracted at a slower pace.
Services sector, which contributes to the economy more than 50 per cent, expanded for the third month but at a reduced rate. New business, activity, and employment indices showed slower growth. Input costs contracted for the first time, while order backlogs expanded faster.
However optimism persisted, with faster expansion rates anticipated in manufacturing, construction, and services. Agriculture, however, showed a decelerating future outlook.
"The latest PMI readings provide a cautiously positive outlook for the Bangladeshi economy as it enters the New Year," according to the press release.
It further states: "While the headline PMI signals a slower pace of growth, the economy's key sectors remain in expansion, reflecting resilience in the face of political and economic challenges."
This PMI performance underscores the economy's efforts to navigate volatility while pursuing economic stability and growth.
The Bangladesh PMI was developed in 2024 by Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, in cooperation with the Singapore Institute of Purchasing and Materials Management (SIPMM) and supported by UK International Development.
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