Bangladesh's Purchasing Managers' Index (PMI) increased to 62.2 in November, a 6.5 percentage point climb from October, according to an unofficial estimate, indicating accelerated economic expansion driven by agriculture, manufacturing and services sectors.

However, the construction sector saw a setback, reverting to contraction.

The PMI, released by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), is a tool designed to offer timely insights into the nation's economic health, according to the MCCI.

Developed with support from the UK Government and technical expertise from the Singapore Institute of Purchasing & Materials Management (SIPMM), it provides a critical barometer for businesses, investors and policymakers.

In the latest report published on December 7, agriculture showed robust growth, marking a second consecutive month of expansion with improved indexes for new business and activity.

Employment in the also sector contracted at a slower pace, while order backlogs contracted faster. Manufacturing extended its expansion streak to three months, with gains in new orders, exports, factory output, and input purchases.

Notably, the sector posted first-time growth in employment, imports, and supplier deliveries. Order backlogs contracted at a reduced rate. The construction sector, which had marginally expanded in October, faced a downturn. Input costs and order backlogs contracted, though new business, activity and employment showed slight improvements.

The services sector continued its recovery, expanding for a second month with stronger growth in new business and order backlogs. Employment in the sector returned to positive territory, while input costs rose more slowly.

The latest PMI readings indicate a gradual expansion of the Bangladesh economy for the second month after previously posting 3 months of contractions.

Despite the positive outlook, the economy continues to face challenges arising from various political process-related uncertainties and disruptions from industrial and other protests.