B Mirror Report:  Bangladesh’s overall economic activity expanded at a faster pace in April, driven mainly by improved performance in the agriculture and manufacturing sectors, according to the latest Purchasing Managers’ Index (PMI) report jointly released by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh.

The report, published on May 7 with support from the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management, showed that the Bangladesh PMI rose to 54.6 in April from 53.5 in March, indicating stronger business expansion.

A PMI reading above 50 signals growth in economic activity.

According to the report, the April index increased by 1.1 points from the previous month, reflecting faster expansion across the economy.

The manufacturing sector returned to growth after experiencing contraction in March, supported by stronger factory output, increased purchases of inputs and higher input prices. New orders, export orders and employment also moved back into positive territory during the month.

However, inventories of finished goods and imports remained in contraction, although the pace of decline slowed. Supplier deliveries and order backlogs also slipped back into contraction.

The agriculture sector recorded its eighth consecutive month of expansion, driven by stronger business activity, rising input costs and growing order backlogs. New business and employment in the sector also returned to growth.

In contrast, the construction sector contracted for the third consecutive month, with the pace of decline accelerating further in April. Construction activity, new business and employment remained weak, though input costs and order backlogs continued to rise at a slower pace.

The services sector maintained expansion for the nineteenth straight month, supported by growth in business activity, employment and input costs. However, both new business and order backlogs returned to contraction during the month.

The report said business sentiment remained positive across all major sectors, including agriculture, manufacturing, construction and services, indicating cautious optimism among businesses despite ongoing economic challenges.

Many businesses expressed hope that production and overall business conditions would improve further in the coming months if the energy situation stabilises and broader economic conditions improve.

The report also noted that the ongoing Middle East conflict has contributed to higher oil prices, supply chain disruptions and inflationary pressures. Despite these challenges, strong future business indicators suggest that short-term business confidence in Bangladesh remains stable and cautiously optimistic.