Bangladesh’s key economic sectors saw faster expansion in January, as reflected in the Bangladesh Purchasing Managers’ Index (PMI), which rose to 65.7—up 4.0 points from December.

A PMI reading above 50 indicates expansion, while below 50 signals contraction. The latest figures show strong growth in agriculture, construction, and services, though manufacturing expanded at a slower pace.

Agriculture recorded its fourth month of expansion, with business activity and new orders rebounding. However, employment declined, and input costs rose more slowly.

Manufacturing saw its fifth straight month of growth, though indicators such as new orders, exports, and factory output expanded at a reduced pace. Meanwhile, employment returned to growth, and order backlogs eased.

The construction sector expanded for a second month, supported by rising new business and construction activity. However, employment fell, and order backlogs contracted further.

Services marked their fourth consecutive month of expansion, with business activity, employment, and new orders rising. Input costs also increased.

The PMI report noted that while exports and seasonal consumption trends are driving growth, investment confidence remains weak due to sluggish domestic demand, high business costs, and energy supply disruptions.

The PMI was launched in 2024 by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh in partnership with the Singapore Institute of Purchasing & Materials Management (SIPMM) and UK International Development.