Bangladesh’s economic activity slowed in August, with the overall PMI falling to 49.9 from 57.8 in July, although agriculture continued to expand and construction returned to growth.
The overall PMI stood at 49.9 in August, down 7.9 points from 57.8 in July, indicating a slight moderation in economic activity amid temporary pressures on manufacturing and services.
Agriculture remained a key source of strength, with its PMI rising 1.3 points to 56.5.
The sector recorded its 12th consecutive month of expansion, supported by continued growth in new business and business activity, as well as higher employment.
Construction also returned to expansion, with its PMI reaching 52.4 as activity and employment increased. Manufacturing, however, weakened during the month, with its PMI falling 18 points to 47.4 amid temporary challenges and continued increases in input prices.
Order backlogs remained in contraction, although the pace of decline slowed, while supplier delivery times were unchanged.
The services sector recorded a PMI of 49.2, entering contraction for the first time in 22 months.
However, new business and business activity continued to expand, albeit at slower rates, while input cost and order-backlog pressures eased.
Business respondents remained cautiously optimistic about the coming months. Many described their current business situation as satisfactory and expected further improvement.
They said lower business costs, stronger financial support and a more supportive policy environment would help strengthen economic activity.
The report said improved energy supply, easier access to finance, better control of operating costs and business-friendly tax and policy support could boost business confidence and accelerate the economic recovery.
Policy Exchange Bangladesh Chairman and CEO Dr M Masrur Reaz said the August PMI reading of 49.9 showed that economic activity remained broadly near the neutral threshold despite temporary pressures on manufacturing and services.
He said continued expansion in agriculture and the return of construction to growth highlighted the economy’s underlying resilience.
