Bangladesh’s private-sector economic activity accelerated sharply in July, with the Purchasing Managers’ Index (PMI) rising to 57.8 as manufacturing staged a strong recovery.
The latest PMI data, presented at a seminar in Dhaka on Monday, showed expansion across agriculture, manufacturing and services, while construction remained just below the expansion threshold.
Manufacturing emerged as the strongest-performing sector, recording a PMI of 65.4 in July. Services followed with 56.0 and agriculture with 55.2. Construction posted 49.3, indicating a marginal contraction.
The findings were unveiled at a seminar jointly organised by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB) at the MCCI office in Gulshan.
According to the presentation, the July improvement coincided with Bangladesh’s strongest monthly export earnings in almost a year. Speakers said stronger business confidence, an improved external outlook and expectations of a more supportive business climate after the national budget contributed to the recovery.
The PMI is a monthly survey-based indicator designed to provide an early snapshot of economic conditions. It covers agriculture, manufacturing, construction and services and draws responses from senior executives of private-sector companies.
A PMI reading above 50 indicates expansion, while a reading below 50 represents contraction. A reading of exactly 50 means conditions remained unchanged from the previous month.
Speakers highlighted the importance of the index as it becomes available well ahead of official GDP data. They said PMI can therefore help policymakers and businesses identify changes in economic activity more quickly.
Bangladesh’s PMI initiative was conceptualised in 2022 during the post-pandemic recovery period and formally launched in November 2023 with support from the UK Foreign, Commonwealth and Development Office (FCDO), in collaboration with the Singapore Institute of Purchasing and Materials Management (SIPMM).
The survey currently covers 400 companies — 212 in services, 92 in manufacturing, 50 in construction and 46 in agriculture. The panel represents key areas including wholesale and retail trade, real estate, transportation, manufacturing, crops and horticulture.
The seminar also reviewed the index’s performance during several major economic disruptions. PMI dropped 27 points between June and July 2024 amid the July Uprising, a nationwide curfew and a 10-day internet shutdown.
It declined by 8.8 points between March and April 2025 following extended public holidays, early US tariffs on apparel and energy supply constraints. Another 7.8-point fall was recorded between October and November 2025 amid weak global demand and investment uncertainty ahead of the national election.
The index then fell 9.9 points between May and June 2026 as manufacturing and construction slipped into contraction. The decline was attributed to extended Eid holidays, the start of the monsoon, weaker pre-Eid demand and the introduction of a new 15 percent VAT.
Participants stressed that Bangladesh needs more frequent and reliable economic surveys to improve policymaking. They noted that major surveys, including the Household Income and Expenditure Survey and Labour Force Survey, are conducted only once every five and three years, respectively.
They said high-frequency indicators such as PMI can help fill these data gaps by providing timely information on economic trends and supporting evidence-based decisions by both the government and private sector.
Executives and representatives from BRAC Bank, Standard Chartered Bank, Robi Axiata, PRAN-RFL Group, Square Pharmaceuticals, Berger Paints and ACI, among other leading businesses, attended the seminar.
