Economy grows faster in October: PMI

The Bangladesh economy grew faster in October compared with the previous month, posting a 61.8 expansion rate, according to the Purchasing Managers’ Index (PMI).

Economic activities grew 2.7 points from September, thanks to a faster expansion rate for all the key sectors of agriculture, manufacturing, construction and services, as per the PMI.

Latest PMI readings indicate that the overall Bangladesh economy continued to expand, primarily driven by favourable crop conditions and expectations of a good harvest in the agricultural sector,” said Dr M Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh.

Other sectors of the economy also posted faster expansion rates, going into the final quarter of the year, with monthly growth in exports and inflation gradually waning, he said on Sunday.

Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) released the Bangladesh Purchasing Managers’ Index (PMI) October report on Sunday.

The PMI is a pioneering initiative that aims to offer timely and accurate insights into the country's economic health to help businesses, investors and policy makers make informed decisions.

It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from Singapore Institute of Purchasing & Materials Management (SIPMM).

The agriculture sector posted its 2nd month of expansion, and at a faster rate. The sector posted faster expansion readings for the indexes of new business, business activity, and input costs, and the employment index reverted to an expansion reading

The order, however, backlogs index posted a faster contraction rate.

The manufacturing sector posted its 14th month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new orders, new exports, factory output, input purchases, finished goods, imports, input prices, employment, and supplier deliveries. The order backlogs index recorded a more rapid decline.

The construction sector posted its 2nd month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new business, construction activity, employment, and input costs. The order backlogs index posted a slower contraction rate.

The services sector posted its 13th month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new business, business activity, employment, and input costs. The order backlogs index reverted to an expansion reading after recording 2 months of contraction readings.

In terms of the future business index, slower expansion rates were recorded for all key sectors of agriculture, manufacturing, construction and services.