Bangladesh's private-sector economic activity showed signs of a faster pickup as per July indicator as a sharp rebound in manufacturing and continued growth in agriculture and services provided strong pivots.
Purchasing Managers' Index (PMI) is the gauge for tracking pace of expansion, and the latest count shows the headline PMI rose 4.9 points from June to hit 57.8 in the past month, signalling a stronger pace of economic expansion.
Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) jointly revealed the index on Sunday.
A PMI above 50 means the economy is on the expansion while below 50 contraction.
Three of the four sectors covered by the index recorded expansion in July, with manufacturing posting the strongest reading at 65.4, followed by services at 56.0 and agriculture at 55.2.
Construction remained marginally in contraction, with a PMI reading of 49.3, although the sector improved by 9.1 points from June count.
The manufacturing PMI recorded the biggest monthly improvement, rising 16.6 points to 65.4. Expansion was recorded in new orders, new export orders, output, input purchases, imports, employment, and supplier deliveries.
"The manufacturing rebound also coincided with the country recording its highest monthly export earnings in 12 months," the PMI report mentions. The export receipts were reported a sharp rise in June last, worth $4.2 billion.
Order backlogs in manufacturing, however, remained in contraction, while input prices continued to rise.
Agriculture recorded its 11th consecutive month of expansion, although the sector's PMI fell 9.6 points from June. New business and business activity remained in expansion, while employment slipped into marginal contraction.
Input costs continued to rise strongly in agriculture, while order backlogs remained in contraction.
Services extended its expansion for a 22nd consecutive month, with its PMI rising 1.4 points to 56.0.
New business, employment and input costs expanded at faster rates in the services sector, while the contraction in order backlogs eased. Business activity remained in expansion.
Construction, meanwhile, remained just below the 50-point threshold that separates expansion from contraction. New business, construction activity and employment continued to contract, although at slower rates than in June. Input costs and order backlogs remained in expansion.
Dr M Masrur Reaz, chairman and chief executive of PEB, said the July reading indicated a broad-based strengthening of the economy, led by manufacturing and supported by continued expansion in agriculture and services.
"The improvement in manufacturing, stronger external-sector prospects and expectations of a more supportive business environment following the FY2026-27 budget were contributing to higher business confidence," he added.
The PMI is compiled by MCCI and Policy Exchange Bangladesh with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management.
The index is intended to provide a timely measure of changes in business activity in the country and helps companies, investors and policymakers assess economic conditions.
