Bangladesh’s economy registered a stronger growth pulse in October, as the country’s Purchasing Managers’ Index (PMI) climbed 2.7 points from the previous month to reach 61.8, signaling a faster pace of expansion across all major sectors.
The October PMI – jointly released by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB) – marks a broad-based acceleration driven by gains in agriculture, manufacturing, construction, and services.
“The latest PMI readings indicate that the overall Bangladesh economy continued to expand, primarily supported by favourable crop conditions and expectations of a good harvest in the agricultural sector,” said Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.
He added that other key sectors also maintained strong growth momentum heading into the final quarter of 2025, while export growth stabilized and inflationary pressures gradually eased.
Broad-based sectoral expansion
The agriculture sector logged its second consecutive month of expansion at a faster pace, buoyed by rising new business and business activity, coupled with higher input costs. Employment in the sector also returned to an expansion phase, although order backlogs contracted further.
The manufacturing sector extended its growth streak to the 14th straight month, reflecting sustained improvement in factory output, new orders, exports, and input purchases. Employment and supplier deliveries also strengthened, underscoring resilient industrial activity despite softer order backlogs.
The construction sector continued its recovery for the second month, supported by increased construction activity, job creation, and input demand. Order backlogs contracted more slowly, suggesting gradual stabilisation in project pipelines.
Meanwhile, the services sector posted its 13th month of expansion, recording faster growth in new business, business activity, and employment. For the first time in two months, the order backlogs index moved back into expansionary territory – a sign of renewed demand across retail, logistics, and financial services.
Future outlook moderates slightly
While the current readings depict solid momentum, the future business index showed slower expansion rates across all key sectors, indicating a degree of caution among firms amid global economic uncertainties and domestic inflation challenges.
A tool for policy and business insight
The Bangladesh PMI – developed by MCCI and PEB with support from the UK Government and technical expertise from the Singapore Institute of Purchasing & Materials Management (SIPMM) – aims to provide timely insights into the country’s economic health.
Analysts note that a PMI above 50 indicates expansion in economic activity, while a reading below 50 reflects contraction. With October’s score of 61.8, Bangladesh remains firmly in growth territory, underscoring the resilience of its production and service sectors as 2025 draws to a close.
Source: UNB