July PMI rises to 57.8 as manufacturing rebounds

Bangladesh’s Purchasing Managers’ Index (PMI) rose 4.9 points to 57.8 in July, signalling stronger economic activity, according to a survey released on Sunday by the Metropolitan Chamber of Commerce and Industry and Policy Exchange Bangladesh.

Manufacturing led the recovery, with its PMI jumping 16.6 points to 65.4, supported by higher new orders, exports, output, employment, imports and supplier deliveries.

The services sector expanded for the 22nd consecutive month, reaching 56.0, while agriculture remained in expansion for the 11th month at 55.2. Construction, however, stayed in contraction at 49.3 despite a significant improvement from June.

Analysts linked the improvement to better foreign-exchange conditions and expectations of a more supportive business environment. However, weak order backlogs remain a concern for future growth.