In comparison to January, the nation’s economy shrank marginally in February. The country’s leading business association, the Metropolitan Chamber of Commerce and Industry (MCCI), and the private research firm Policy Exchange Bangladesh (PEB) collaborated to produce the Bangladesh Purchasing Managers’ Index (PMI) February report, which included this information.

Bangladesh’s overall PMI score in February dropped 1.1 points from January to 64.6, according to the report that was made public on Sunday, March 9. The construction and services sectors expanded more slowly, while the manufacturing and agricultural sectors expanded more quickly, which contributed to the most recent PMI index.
In order to help businesses, investors, and policymakers make well-informed decisions, the PMI is a trailblazing program that offers precise and timely analysis of the nation’s economic situation.

The report is published every month with the support of the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM).

The agricultural sector maintained 5 consecutive months of expansion and showed a rapid expansion rate. The new business, business activity, input consumption and order backlog indices recorded rapid expansion. The employment index showed a slow contraction rate.

The manufacturing sector maintained 6 consecutive months of expansion and showed a rapid expansion rate. The new orders, factory production, input purchases and supplier deliveries indices recorded rapid expansion. However, the new exports, finished goods, imports and employment indices recorded slow expansion. The order backlog index showed a rapid contraction rate.

The construction sector maintained 3 consecutive months of expansion, but at a slow pace. The new business and construction activity indices recorded slow expansion, while the input consumption index showed a rapid expansion. The employment index returned to expansion and the order backlog index showed a slow contraction rate.

The service sector maintained 5 consecutive months of expansion, but at a slow pace. New business, business activity and employment indices recorded slow expansion. The order backlog index returned to contraction and the input cost index showed rapid expansion.

All major sectors – agriculture, manufacturing, construction and services – recorded slow expansion in the future business index.
According to M. Masrur Riaz, chairman and CEO of Policy Exchange Bangladesh, the Bangladesh PMI index showed five months in a row of steady growth, propelled by both seasonal agricultural growth and ongoing export growth. The services and construction industries, however, expanded slowly. Due to persistent protests, energy outages, and poor demand, business confidence is low. Improving law and order, reaching a political agreement on the electoral roadmap, and swiftly implementing priority reforms are all necessary for a long-lasting recovery.