STAR BUSINESS REPORT

Bangladesh’s economy appears to have expanded at a faster pace in May than in the previous month, supported largely by stronger activity in the manufacturing and services sectors, as the Bangladesh Purchasing Managers’ Index (PMI) climbed 8.2 points from April to 62.8 in May.

Meanwhile, the construction sector returned to expansion, while growth in the agriculture sector slowed, according to the May PMI report released by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB).

“The May PMI shows that the Bangladesh economy moved onto a stronger expansionary path, with manufacturing, construction and services recording faster growth compared with April,” said M Masrur Reaz, chairman and CEO of PEB.

“Although the Middle East conflict has continued to raise energy costs, disrupt supply chains and sustain inflationary pressures, stronger domestic demand and increased business activity ahead of Eid appear to have supported broader-based expansion across major sectors.”

The PMI is a pioneering initiative designed to provide timely and accurate insights into the country’s economic health, helping businesses, investors and policymakers make informed decisions.

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

According to the report, the agriculture sector recorded its ninth consecutive month of expansion, albeit at a slightly slower pace.