Staff Correspondent:

Bangladesh’s June Purchasing Managers’ Index (PMI) recorded an expansion rate at 53.1.

The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB), successfully released the Bangladesh Purchasing Managers’ Index (PMI) June report on Monday.

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 decision.

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

The June reading of the Bangladesh Purchasing Managers’ Index (PMI) declined 5.8 points from the previous month to record a slower expansion rate at 53.1.

This latest PMI reading was attributed to a first-time contraction for the construction sector, whereas slower expansion rates were posted for the remaining key sectors of agriculture, manufacturing, and services.

The agriculture sector posted its 9th month of expansion, but at a slower rate. The sector posted a first-time contraction for the employment index but faster expansion rates were recorded for the indexes of new business, business activity, input costs, and order backlogs, said an MCCI press release.

The manufacturing sector posted its 10th month of expansion, but at a slower rate. The sector posted contraction readings for the indexes of input purchases, finished goods, imports, and employment.

The release said slower expansion readings were recorded for the indexes of new orders, new exports, factory output, input prices, and supplier deliveries. The order backlogs reverted to an expansion reading after having recorded contractions for 10 consecutive months.

The construction sector reverted to a contraction reading after having posted 6 months of expansion. The sector recorded contraction readings for the indexes of new business, construction activity, employment, and order backlogs. The input costs index posted a slower expansion reading.

The services sector posted its 9th month of expansion, but at a slower rate. The sector posted contraction readings for the indexes of new business, business activity, and order backlogs, whereas faster expansion readings were recorded for the indexes of employment and input costs.

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

“The latest PMI readings indicate the overall Bangladesh economy continued to expand for 9 consecutive months,” said Dr. M Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh.

However, he said the pace of expansion has slowed down in June, and the construction sector recorded a first-time contraction in last 8 months.

The long Eid holidays, start of monsoon, and anticipated actual tax changes in budget have impacted the economic dynamism in June, added Reaz.