Bangladesh economy experienced a slight slowdown in December, with the Purchasing Managers' Index (PMI) slipping by 0.5 points from November to 61.7.

The contraction is attributed to reduced growth in the agriculture and services sectors, even as manufacturing gained momentum and construction returned to expansion, according to a report jointly published by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB).

The agriculture sector, while maintaining growth for three consecutive months, saw slower expansion.

New business contracted, and business activity grew at a reduced rate. However, employment rebounded, and input costs rose at a faster pace.

The manufacturing sector recorded its fourth consecutive month of growth, driven by increases in new orders, exports, factory output, and supplier deliveries.

The construction sector also rebounded, with faster growth in new business and activity.

Despite these gains, employment in construction slipped into contraction, finished goods expanded at a slower pace, and input costs rose after months of decline.

Meanwhile, the services sector experienced slower growth, with reduced gains in new business, activity, and employment.

Despite challenges in several sectors, the report highlighted optimism, citing faster expansion in future business across manufacturing, construction, and services, even as agriculture posted slower growth.

While the overall PMI suggests a positive trajectory, the report cautioned that political instability and economic uncertainty remain significant hurdles.