Business expansion slows in June

Bangladesh's Purchasing Managers' Index (PMI) pointed to a slower expansion in business activity in June from a month earlier due to a slower expansion rate in all key sectors of agriculture, manufacturing, construction and services.

The PMI score, which is seen as a good measure of overall economic growth, hit 63.9 last month, down by 6.1 points from March's 70.1.

The PMI is a number from 0 to 100, with a reading above 50 indicating expansion and a reading below 50 representing contraction.

Today, Policy Exchange Bangladesh disclosed the index data through issuing a press release.

The agriculture sector recorded the sixth month of expansion after having a contraction in last December. 

The sector was in a slower expansion rate for the indexes of new business, business activity, employment, input costs, but the order backlog index contributed to a faster expansion rate, Policy Exchange Bangladesh said.

The manufacturing sector saw a slower expansion rate for the key indexes of new orders, new exports, factory output, input purchases, employment, and supplier deliveries.

Slower expansion rates were also recorded for the indexes of imports and input prices, whereas the order backlog index posted a faster expansion rate. 

The construction sector posted a slower expansion rate for the indexes of new business, construction activity, employment, and input costs. 

The services sector posted a slower expansion rate for the indexes of new business and business activity, whereas faster expansion rates were recorded for the indexes of employment and input costs.

In terms of the future business index, slower expansion rates were recorded for all key sectors of agriculture, manufacturing, construction, and services, it added.

The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and private research organisation Policy Exchange Bangladesh jointly launched the index few months back, with the support of the UK Foreign, Commonwealth, and Development Office (FCDO).