Representational Image.

DHAKA, March 8, 2026 (BSS) - The February reading of the Purchasing Managers' 
Index (PMI) increased by 1.8 points from the previous month to 55.7, 
indicating a faster pace of expansion.
 
The latest reading reflects stronger growth in the agriculture, 
manufacturing, and services sectors while the construction sector returned to 
contraction.

The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy 
Exchange Bangladesh (PEB) successfully released the Bangladesh Purchasing 
Managers' Index (PMI) February report here today.

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 and Materials Management (SIPMM).
 
The agriculture sector recorded its sixth consecutive month of expansion, and 
at a faster rate. The indexes of new business and business activity recorded 
a faster pace of expansion, while the indexes of input costs and order 
backlogs returned to expansion. However, the employment index continued to 
contract, and at a faster pace, said a press release.

The manufacturing sector remained in expansion for the 18th consecutive 
month, with growth accelerating during the month. 

Continued expansion was recorded across key indicators, including new orders, 
factory output, imports, input prices, and supplier deliveries.

However, the indexes of new exports, finished goods, and employment remained 
in contraction, while the input purchases returned to expansion. The order 
backlogs index reverted to contraction during the month.

The construction sector returned to contraction after registering expansion 
in the previous month. The sector registered contraction in the indexes of 
new business, employment and order backlogs, while the indexes of 
construction activity and input costs recorded expansion.

The services sector recorded its 17th consecutive month of expansion, with 
growth accelerating during the month. The sector reported expansion across 
the indexes of new business, business activity, employment, input costs, and 
order backlogs.
Looking ahead, the future business index indicated continued expansion across 
all key sectors, namely agriculture, manufacturing, construction, and 
services, reflecting sustained improvements in business expectations.

Respondents across Bangladesh's key economic sectors describe a business 
environment marked by modest seasonal optimism ahead of the Holy Month of 
Ramadan and Eid-ul-Fitr, alongside continued pressure from elevated input 
costs and uneven sectoral performance. 

While stronger festive demand is expected to support sales-particularly in 
the services and retail sectors-firms remain concerned about margin 
compression driven by high raw material, labour, and utility costs.
 
Business expectations remain cautiously positive; however, the construction 
sector and certain labour market indicators continue to show signs of 
weakness. Overall, the near-term outlook appears seasonally supportive, 
though broader growth prospects remain constrained by persistent inflationary 
pressures, sector-specific bottlenecks, and external economic risks.

"February PMI indicates a modest, seasonally driven uptick in economic 
dynamism. It suggests a slight increase in economic activity, reflecting 
stronger demand in agriculture and services linked to Ramadan-related 
consumption," said Dr. M Masrur Reaz, Chairman and CEO, Policy Exchange 
Bangladesh.

He said the continued expansion of the Future Business Index across major 
sectors signals sustained business optimism. "However, escalating military 
conflict in the Middle East poses significant downside risks to growth 
expectations." He added.