Economic Momentum Strengthens in July as PMI Hits 61.5

Bangladesh’s economic momentum strengthened significantly in July, as the country’s Purchasing Managers’ Index (PMI) rose by 8.4 points from the previous month to reach 61.5—indicating a strong expansion in overall business activity.

The latest PMI reflects growing confidence in the country's economic outlook, with key sectors such as manufacturing, services, and construction all contributing to the upturn.

The July reading was largely driven by faster growth in the manufacturing and services sectors. The construction sector also returned to expansion after a brief contraction, while the agriculture sector continued to grow but at a slower pace, influenced by seasonal and monsoon-related factors.

In manufacturing, July marked the 11th consecutive month of expansion. Increases were recorded across major indicators including new orders, production, input purchases, finished goods, imports, and supplier deliveries. However, employment and new export orders showed signs of contraction.

The services sector saw its 10th straight month of growth, with improvements in new business, business activity, employment, input costs, and order backlogs—all expanding at a faster rate.

After a temporary downturn in June, the construction sector rebounded in July. Growth was observed in new business, construction activity, input costs, and backlogs. However, employment continued to decline.

Meanwhile, the agriculture sector posted its 10th consecutive month of expansion, though the pace of growth slowed. Sub-indicators such as new business and input costs increased at a slower rate, and employment continued to contract.

Looking ahead, future business outlooks showed slower expansion in agriculture, manufacturing, and services, while construction displayed a slight increase in optimism.

The report also noted that Bangladesh achieved a record monthly export of $4.77 billion in July, reinforcing the strong performance of the external sector.

Additionally, the country received $328 million in remittances during the first five days of August, further supporting the economic recovery.