June Purchasing Managers’ Index records slower expansion at 63.9

The June reading of the Bangladesh Purchasing Managers’ Index (PMI) declined by 6.2 points from the previous month to 63.9, indicating a slower expansion, according to a press release from the Metropolitan Chamber of Commerce and Industry (MCCI).

This decline was observed across key sectors including agriculture, manufacturing, construction, and services.

The PMI serves as a forward-looking economic indicator crucial for investors, businesses, and policymakers to gauge economic direction and make informed decisions.

It is based on a monthly survey of supply chain managers across industries, covering both upstream and downstream activity.

According to the MCCI press release, in the agriculture sector, expansion continued for the sixth consecutive month following a contraction in December last year.

However, there was a slowdown in the expansion rates for new business, business activity, employment, and input costs, while the order backlog index showed a faster expansion.

Employment also saw its third consecutive month of expansion, as per the press release.

The manufacturing sector posted 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 finished goods index reverted to a contraction after posting three months of expansion readings.

The construction sector posted a slower expansion rate for the indexes of new business, construction activity, employment, and input costs. The order backlog index posted a 3rd month of contraction.

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. The order backlog index posted a slower contraction, and the order backlog index had posted 6 months of consecutive contractions.

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