BSS
  09 Aug 2026, 18:39

Bangladesh July PMI witnesses faster expansion at 57.8

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).