Pace of Economic activities accelerates in February, PMI rises to 55.7
The pace of economic expansion in the country accelerated in February. Among the four pivotal sectors of the economy, three recorded faster expansion, while only the construction sector experienced a slowdown. Not only did growth in this sector decelerate, it also slipped into contraction during the month.
In February, the country’s Purchasing Managers’ Index (PMI) stood at 55.7, up from 53.9 in January. This indicates that the index increased by 1.8 points over the past month.
The PMI is jointly compiled by the Metropolitan Chamber of Commerce and Industry (MCCI) and the research organisation Policy Exchange of Bangladesh. The PMI for February was published today, Sunday, said a statement.
According to the statement, the agriculture sector has remained in expansionary territory for the sixth consecutive month. Growth in this sector accelerated significantly in February. The index value rose from 53 in January to 64.5 in February. The sub-indices for new business and business activity increased sharply. However, the employment index in the agriculture sector remained in contraction, and the rate of decline was steeper than before.
The manufacturing sector has now maintained an expansionary trend for 18 consecutive months. Growth in the sector strengthened further last month. Several key sub-indices, including new orders, factory output, imports, input prices and supplier deliveries, continued to expand.
However, sub-indices such as new exports, finished goods and employment remained in contraction. The index for the purchase of production inputs returned to expansion. Meanwhile, the sub-index for outstanding business orders contracted again.
Although the construction sector had expanded in January, it slipped back into contraction last month. Sub-indices including new business, employment and outstanding work orders all recorded contraction. Nevertheless, the sub-indices for construction activity and input costs continued to show expansion.
The services sector has now remained in expansionary territory for 17 consecutive months. Growth in the sector accelerated further in February. All sub-indices—including new business, business activity, employment, input costs and outstanding work orders—recorded expansion.
The statement also noted that future business expectations remain positive. According to the future business index, all four major sectors—agriculture, manufacturing, construction and services—are expected to continue expanding. This suggests that business confidence is steadily improving.
M. Masrur Reaz, chairman and chief executive of Policy Exchange Bangladesh, said that economic activity had picked up slightly due to seasonal factors. With Ramadan approaching, increased consumption boosted demand in the agriculture and services sectors, which is also reflected in overall economic activity.
He added that the future business index indicates the possibility of continued expansion. However, escalating military tensions in the Middle East could negatively affect the country’s growth, as well as the global economy.