Bangladesh’s economic expansion moderated in April, with the country’s Purchasing Managers’ Index (PMI) dropping to 52.9, down 8.8 points from the previous month. The decline indicates a softer pace of growth, though the reading remains in expansionary territory.

A PMI above 50 signals economic expansion, while a figure below that threshold suggests contraction. April’s reading, although still positive, marks the weakest performance since October 2025—the start of the current growth cycle.

The slowdown was largely driven by reduced momentum across manufacturing, construction, and services. These sectors, which have played a central role in post-pandemic recovery, saw diminished activity compared to March. In contrast, the agriculture sector continued to expand at a stronger pace, providing some support to the overall economic trend.

The latest figures reflect growing challenges in sustaining economic momentum amid persistent global uncertainties and domestic structural pressures. Analysts suggest that while a PMI above 50 still denotes expansion, the sharp month-on-month drop highlights the need for caution in interpreting near-term growth prospects.

Policymakers may look to address emerging bottlenecks in industrial output and service activity to ensure broader stability in the coming quarters.