The economy expanded for the second consecutive month in November 2024 as reflected in the Purchasing Managers' Index (PMI) released Sunday.
According to the latest report, the Bangladesh PMI increased by 6.5 points to 62.2 in November compared to 55.7 in October and 49.7 in September.
A PMI reading above 50 indicates that the economy is generally expanding, while a reading of 50 signals no change compared to the previous month, and a reading below 50 reflects a contraction.
The Bangladesh PMI was developed in 2024 by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, in collaboration with the Singapore Institute of Purchasing and Materials Management (SIPMM) and supported by the UK International Development.
It serves as a key economic indicator derived from monthly surveys of private sector companies.
"The latest PMI readings indicate a sustained expansion of the Bangladesh economy for the second month, following three months of contractions," says a press release.
"Despite the positive outlook, the economy continues to face challenges arising from various political uncertainties and disruptions caused by industrial and other protests."
The November 2024 PMI reading reflects a faster rate of expansion across the agriculture, manufacturing, and services sectors, although the construction sector reverted to contraction.
The agriculture sector experienced its secondconsecutive month of expansion, with faster growth in new business and business activity indexes.
While the employment index showed a slower contraction, the order backlogs index contracted at a faster pace.
The manufacturing sector marked its third consecutive month of expansion, with growth in indexes for new orders, new exports, factory output, input purchases, and input prices.
The first-time expansion readings were observed for indexes of finished goods, imports, employment, and supplier deliveries. Meanwhile, the order backlogs index contracted at a slower rate.
The construction sector returned to contraction after a marginal expansion in October. Construction
readings were noted for input costs and order backlogs indexes.
The services sector registered its second month of expansion at a faster rate. New business, business activity, and order backlogs indexes showed accelerated expansion.
The PMI is a forward-looking economic indicator that provides insights into the direction of the economy.
First developed in the United States in 1948, it has since been adopted in over 50 countries for its accuracy in capturing the economic pulse of key sectors. The PMI is widely used by investors, businesses, and policymakers to inform decision-making.
The Bangladesh PMI, initiated with support from the UK government, covers key economic sectors based on data compiled from monthly surveys of over 500 private sector enterprises.
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