The Bangladesh Purchasing Managers鈥� Index increased by 6.5 points to surpass 60 points in November, indicating economic growth for the second consecutive month after a period of contraction over the previous three months, according to a report.
The Metropolitan Chamber of Commerce and Industry, Dhaka, and the Policy Exchange Bangladesh published the PMI November report on Sunday.
However, the country continued to face domestic challenges due to uncertainties linked to political processes and disruptions caused by industrial and other protests, the PMI report observed.
The latest PMI reading attributed the growth to a faster rate of expansion in agriculture, manufacturing, and services sectors. However, the construction sector reverted to a contraction.
The PMI index is measured on a scale of zero to 100. Compared with the previous month, a score above 50 indicates economic expansion, while a score below 50 signifies contraction. A score of exactly 50 means there has been no change in activity in the respective sector during the month.
The agriculture sector posted its second consecutive month of expansion and at a faster rate. Growth was driven by faster rates in the indices of new business and business activity.
Although the employment index experienced a slower contraction, the order backlogs index posted a faster contraction.
The manufacturing sector recorded its third month of expansion, with an accelerated growth rate. Expansion was noted across several indices, including new orders, exports, factory output, input purchases and input prices.
For the first time, expansion was also recorded in finished goods, imports, employment and supplier deliveries indices. Meanwhile, the order backlogs index saw a slower rate of contraction.
After a marginal expansion in the previous month, the construction sector returned to contraction. The sector reported contraction in indices of input costs and order backlogs, while new business, construction activity and employment indices showed growth.
The services sector recorded its second consecutive month of expansion, with a faster growth rate. Faster expansion was seen in indices of new business, business activity and order backlogs. The input costs index rose at a slower pace, and the employment index shifted back to expansion.
The future business index highlighted faster expansion rates in key sectors such as agriculture, construction and services. However, the manufacturing sector experienced a slower expansion rate.
The November PMI report underscored a mixed but optimistic outlook for the economy, driven by positive performances in key sectors despite enduring challenges related to domestic political uncertainties and disruptions.
