Bangladesh’s overall Purchasing Managers’ Index (PMI) dropped by 5.8 points in June compared to May, reaching 53.1, signalling a slower pace of expansion across key sectors of the economy.

The decline marks a notable shift in economic momentum, driven largely by the first-time contraction in the construction sector, while the agriculture, manufacturing and services sectors all registered slower expansion rates.

Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) released the Bangladesh Purchasing Managers’ Index (PMI) June report today (Monday).

The PMI is a pioneering initiative that aims to offer timely and accurate insights into the country's economic health to help businesses, investors and policy-makers make informed decisions.

It was developed by MCCI and Policy Exchange, with support from the UK government and technical support from Singapore Institute of Purchasing & Materials Management (SIPMM).

Bangladesh’s PMI drops 8.8 points in April, settles at 52.9

According to the latest PMI data, the agriculture sector continued its expansion for the ninth consecutive month, albeit at a reduced pace.

The sector reported its first-ever contraction in the employment index. However, it saw faster expansion in new business, business activity, input costs, and order backlogs.

The manufacturing sector marked its tenth straight month of expansion, but also at a slower rate. It reported contraction in input purchases, finished goods, imports, and employment.

Meanwhile, new orders, export orders, factory output, input prices and supplier deliveries all recorded slower expansion rates. Notably, order backlogs posted an expansion after 10 months of contraction.

After six months of growth, the construction sector experienced a reversal, entering contraction territory in June.

The sector posted declines in new business, construction activity, employment and order backlogs, while input costs rose at a slower pace. The services sector maintained its expansion for the ninth month in a row but with reduced strength.

The sector posted contraction readings in new business, business activity and order backlogs. On the other hand, employment and input costs saw a faster pace of expansion.

Bangladesh’s PMI jumps to 58.9 in May

In terms of business outlook, the future business index reflected mixed sentiment. Slower expansion expectations were reported in manufacturing and construction, while agriculture and services showed improved optimism for the coming months.

Despite the June downturn, the overall PMI figure above the 50 mark still indicates expansion—though at a more subdued pace—highlighting the need for close monitoring of sectoral dynamics amid shifting economic conditions.