News Flash

DHAKA, Aug 9, 2026 (BSS) - The July reading of the Bangladesh Purchasing
Managers' Index (PMI) rose by 4.9 points from the previous month to 57.8,
indicating a stronger pace of economic expansion.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy
Exchange Bangladesh (PEB), successfully released the Bangladesh Purchasing
Managers' Index (PMI) July report today.
The report indicates that the improvement was driven primarily by a strong
rebound in manufacturing while construction remained marginally in
contraction despite a broad-based improvement.
Three of the four key sectors recorded expansion, with manufacturing
registering the strongest performance at 65.4, followed by agriculture at
55.2 and services at 56.0.
The agriculture sector recorded its 11th consecutive month of expansion,
although growth moderated by 9.6 points.
New business and business activity remained in expansion,
while employment moved into marginal contraction.
Input costs continued to expand strongly while order backlogs remained in
contraction, said an MCCI press release.
The manufacturing sector recorded the strongest turnaround, rising 16.6
points to 65.4 and making the largest positive contribution to the headline
PMI.
Expansion was recorded across new orders, new export orders, output, input
purchases, imports, employment and supplier deliveries, with input prices
also rising. Order backlogs, however, remained in contraction.
The construction sector remained marginally in contraction at 49.3, but
improved by 9.1 points from June. New business, construction activity and
employment recorded slower rates of contraction while input costs and order
backlogs continued to expand.
The services sector continued to expand for the 22nd month, rising 1.4 points
to 56.0. New business, employment and input costs recorded faster expansion,
while the backlog of orders registered a slower contraction. Business
activity remained in expansion.
The Future Business Index recorded strong expansion across all sectors,
reflecting high optimism regarding business conditions in the coming months.
"The July PMI signals broad-based strengthening of Bangladesh's economy, led
by a sharp manufacturing rebound and continued expansion in agriculture and
services.
The manufacturing recovery coincided with the highest monthly
export earnings in 12 months while construction remained marginally in
contraction despite improving conditions," said Dr. M Masrur Reaz, chairman
and CEO of Policy Exchange Bangladesh.
He said strong optimism across all sectors points to improving business
confidence, stronger external-sector prospects, improved foreign-exchange
conditions, and expectations of a more supportive business environment
following the FY2026-2027 Budget.
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 take 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).