Aug PMI shows uptick in economy

FE REPORT
The August reading of the Bangladesh Purchasing Managers' Index (PMI) shows improvement in the general economy as the month witnessed a slower rate of contraction in key sectors.
The PMI improved by 6.6 points to 43.5 in the last month from July's 36.9, according to the PMI report released on Sunday.
"…the interim government works tirelessly to rebuild political stability and ensure normal business operations across sectors following the fall of the Awami League regime," it says.
"Anecdotal evidence suggests that companies are cautiously optimistic of the economic outlook and the future business index continues to record expansion readings for all key sectors of the economy."
A PMI reading above 50 indicates 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'.
As per the latest reading, the country's economy is in contraction.
This latest PMI reading was attributed to contraction readings posted by all four key sectors of agriculture, manufacturing, construction, and services.
The information was revealed at a Focus Group Discussion (FGD) with journalists in the city's Gulshan office of the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka on Sunday.
The MCCI in collaboration with the Policy Exchange Bangladesh (PEB), with support from the Foreign, Commonwealth, and Development Office (FCDO), organised the event on the PMI for Bangladesh.
Hasnat Alam, Senior Manager for Market and Policy Advisory at the PEB, made a brief presentation on the PMI programme in Bangladesh and its latest report.
The agriculture sector recorded a contraction for the second month but at a slower pace - 38.7. The sector posted a slower contraction rate for the indexes of new business, business activity, and employment.
The input costs index posted a slower expansion, whereas the order backlog index reverted to a contraction.
The manufacturing sector recorded a contraction for the second month but at a slower rate - 47.7. The sector posted a slower contraction rate for the indexes of new orders and factory output, whereas the indexes of employment, input purchases, finished goods, and order backlog reverted to a contraction.

The indexes of new exports, imports, and supplier deliveries reverted to an expansion.
The construction sector recorded a contraction for the second month and at a faster rate - 40.0. The sector posted a faster contraction in the indexes of new business and construction activity.
The indexes of input costs and order backlog remained on the expansion track, and the employment index reverted to an expansion.
The services sector posted a contraction for the second month but at a slower rate. The sector posted a slower contraction in the indexes of new business and business activity, and a faster contraction in the employment index.
The input costs index posted a slower expansion, whereas the order backlog index reverted to an expansion.
In terms of the future business index, slower expansion rates were recorded for the key sectors of manufacturing, construction, and services, whereas the agriculture index recorded a faster expansion rate.
The Bangladesh PMI was developed in 2024 by the MCCI and PEB, in cooperation with the Singapore Institute of Purchasing & Materials Management (SIPMM) and supported by the UK International Development.
Farooq Ahmed, Secretary-General and CEO at the MCCI, made the welcome remarks, followed by an open discussion.
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