Economy grew faster in April: PMI

The economy expanded at a faster pace in April compared with the previous month, driven by stronger performance in agriculture and manufacturing, according to the Bangladesh Purchasing Managers’ Index (PMI).

The index, prepared by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and Policy Exchange Bangladesh (PEB), stood at 54.6 in April, up 1.1 points from March, according to a report released yesterday.

Agriculture and manufacturing recorded stronger growth during the month, while the services sector saw slower expansion. Construction, meanwhile, recorded a sharper contraction.

In April, the agriculture sector extended its growth streak to eight consecutive months, with momentum improving further, according to the PMI.

It said business activity, input costs and order backlogs all strengthened, while new business and employment also returned to expansion.

Manufacturing rebounded into expansion after contracting in the previous month.

The recovery was supported by higher factory output, increased input purchases and rising input prices. New orders, exports and employment also returned to growth.

However, declines continued in finished goods and imports, though at a slower pace. Supplier deliveries and order backlogs slipped back into contraction.

The construction sector contracted for a third straight month, with the pace of decline accelerating, showed the index. New business and activity remained in contraction, and employment also fell. Input costs and order backlogs continued to grow, but at a slower rate.

The services sector expanded for the 19th consecutive month, although growth slowed. Business activity, employment and input costs rose, but new business and order backlogs moved into contraction.

According to PMI, the future business index points to faster expansion across agriculture, manufacturing, construction and services, suggesting continued business optimism.

M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh (PEB), said the April PMI showed that the economy remained on an expansion path.

“Although the Middle East conflict has raised oil prices, disrupted supply chains, and increased inflationary pressures, strong future business indicators across all sectors suggest that short-term business confidence remains stable and cautiously optimistic,” added the economist.