Staff Correspondent:

Bangladesh’s overall Purchasing Managers’ Index (PMI) score in May saw an increase of 6.0 points from April to reach 58.9.

Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) successfully on Sunday released the Bangladesh PMI MAY report, said a press release.

The PMI is a pioneering initiative that aims to offer timely and accurate

insights into the country’s economic health to help businesses, investors and policy makers take informed decisions.

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

The MAY reading of the Bangladesh PMI advanced 6.0 points from the previous month to record a faster expansion rate at 58.9.

This latest PMI reading was attributed to a faster rate of expansion posted by the sectors of agriculture, manufacturing, and services, whereas the construction sector posted no change.

The agriculture sector posted its eighth consecutive month of expansion, and at a faster rate. The sector posted faster expansion rates for the indexes of new business, business activity, employment, input costs, and the order backlogs index reverted to an expansion.

The manufacturing sector posted its 9th month of expansion, and at a faster rate. The sector posted expansion readings for most indexes except for the order backlogs index, which posted a slower contraction rate and had recorded contractions for 10 consecutive months.

The construction sector posted its sixth month of expansion, with no change from the previous month. The sector posted a faster expansion reading for the construction activity index, but a slower expansion reading for the input costs index.

Both the indexes of new business and employment reverted to a contraction, whereas the order backlogs index reverted to an expansion.

The services sector posted its eighth month of expansion, and at an accelerated pace. The sector posted faster expansion rates for the indexes of new business and input costs, but a slower expansion reading for the employment index. Both the indexes of the business activity and the order backlogs reverted to an expansion.

In terms of the future business index, slower expansion rates were recorded for the indexes of manufacturing, construction, and services, whereas the agriculture index posted a faster expansion rate.

“The latest PMI readings indicate that the overall Bangladesh economy grew ata faster rate, riding on the export-led manufacturing buoyancy and uptake in agriculture and its supply chain ahead of eid festival. Construction sector however remains the only sector without any growth in expansion.” Masrur Reaz, chairman & chief executive officer (CEO) of the Policy Exchange of Bangladesh.