Bangladesh's overall economic activities expanded at a faster pace in April, supported mainly by stronger performance in agriculture and a rebound in manufacturing, according to the latest Purchasing Managers' Index (PMI).
The survey pointed to continued business optimism despite external risks, although the construction sector remained weak for a third consecutive month.
The Bangladesh PMI rose by 1.1 points to 54.6 in April from the previous month, indicating a faster pace of expansion, the report said on Thursday.
The survey showed that all major sectors except construction recorded expansion during the month.
The agriculture sector posted its eighth consecutive month of expansion, with the pace of growth accelerating further.
Higher growth was recorded in business activity, input costs and order backlogs, while both new business and employment returned to expansion.
The manufacturing sector also returned to expansion after contracting in the previous month.
The recovery was supported by stronger growth in factory output, input purchases and input prices.
New orders, export orders and employment also rebounded during the month.
However, contractions in finished goods and imports continued, although at a slower pace, while supplier deliveries and order backlogs slipped back into contraction.
The construction sector remained under pressure, recording its third consecutive month of contraction, with the pace of decline accelerating further.
Both new business and construction activity remained in negative territory, while employment also declined.
Input costs and order backlogs continued to expand, although at a slower pace compared to previous months.
Meanwhile, the services sector recorded its 19th consecutive month of expansion, though growth moderated during April.
Business activity, employment and input costs increased, while new business and order backlogs returned to contraction.
According to the report, the future business index pointed to faster expansion across agriculture, manufacturing, construction and services, reflecting continued business optimism.
Commenting on the findings, Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said the economy remained on an expansionary path despite external challenges.
"The April PMI shows that Bangladesh's economy remained on an expansionary path, with manufacturing, agriculture and services recording growth, while construction experienced a sharp contraction," he said.
He noted that rising oil prices, supply chain disruptions and inflationary pressures stemming from the Middle East conflict continue to pose risks to the economy.
"However, strong future business indicators across all sectors suggest that short-term business confidence remains stable and cautiously optimistic," he added.
The PMI was jointly developed by Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka in collaboration with the Singapore Institute of Purchasing and Materials Management.
A PMI reading above 50 indicates economic expansion, 50 indicates no change, and below 50 signals contraction.
jasimharoon@yahoo.com