Bangladesh’s economy showed signs of solid recovery in May, as the country’s Purchasing Managers’ Index (PMI) jumped six points to 58.9—its highest reading in recent months.

Economists interpret the sharp rise in PMI as an indication of faster economic expansion, particularly ahead of Eid and amid strengthening external demand.

“Agriculture and manufacturing are fueling growth, supported by festive season demand and export resilience,” said Dr. M Masrur Reaz, CEO of Policy Exchange Bangladesh.

Agriculture logged its eighth straight month of expansion with notable gains in output, employment, and business activity. Manufacturing recorded its ninth consecutive month of growth, though order backlogs remained in contraction.

Services saw a marked boost, rebounding in both business activity and new orders. Construction, however, showed no month-on-month growth, as declines in employment and new business offset marginal improvements in activity and order backlogs.

Looking ahead, the business outlook remains strong in agriculture but slightly tempered across other sectors, reflecting lingering concerns about structural weaknesses, especially in construction.