DHAKA, June 8, 2026 (BSS) - Bangladesh's overall economic activity accelerated in May as the Purchasing Managers' Index (PMI) rose by 8.2 points to 62.8 from the previous month, indicating a faster pace of expansion across all major sectors of the economy.

The latest Bangladesh PMI report, released today by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB), showed stronger growth in manufacturing and services, while the construction sector returned to expansion and agriculture continued to grow, albeit at a slower pace.

The PMI, developed by MCCI and PEB with support from the UK Government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM), is designed to provide timely insights into Bangladesh's economic performance for businesses, investors and policymakers.

According to the report, the agriculture sector recorded its ninth consecutive month of expansion. Business activity and employment grew at a stronger pace, although growth in new business and input costs slowed. Order backlogs, however, remained in contraction territory.

The manufacturing sector posted its second consecutive month of expansion and registered faster growth, supported by stronger increases in new orders, export orders, input purchases and employment. 

Growth in factory output and input prices moderated, while imports and order backlogs returned to expansion. 

Contractions in finished goods inventories persisted, though supplier delivery performance improved.

The construction sector returned to growth after three straight months of contraction. New business, construction activity and employment all moved back into expansion territory. Input costs rose at a faster pace, while growth in order backlogs slowed.

The services sector expanded for the 20th consecutive month and at a faster rate. Business activity, employment and input costs all recorded stronger growth. New business returned to expansion, although order backlogs contracted at a faster pace.

Despite the improved performance, businesses across major sectors reported continued challenges stemming from electricity and energy shortages, rising fuel prices, higher labour costs and increasing transportation expenses. 

Many firms said power disruptions continued to affect productivity and production schedules, while escalating input costs squeezed profit margins.

Respondents also expressed concern about the potential economic fallout from ongoing geopolitical tensions in the Middle East, citing risks of higher fuel prices, supply chain disruptions and weaker export demand. 

Agricultural businesses pointed to weather-related uncertainties affecting production planning and seed sales, while some firms highlighted concerns over imported rice, elevated bank lending rates and sluggish domestic economic activity.

Nevertheless, a number of businesses remained cautiously optimistic, expecting conditions to improve if energy supplies stabilize, overall economic activity strengthens and supportive policy measures are introduced, particularly for small and medium-sized enterprises (SMEs).

Commenting on the findings, the report said Bangladesh's economy had moved onto a stronger expansionary path in May, with manufacturing, construction and services all recording faster growth than in April. 

It noted that stronger domestic demand and increased business activity ahead of Eid helped support broad-based expansion across the economy despite continued inflationary pressures, supply chain challenges and higher energy costs linked to the Middle East conflict.