Sources said this was due to rising inflation and instability in the dollar market, not to mention highest-ever costs of raw materials and other inputs globally
Manufacturing in large and medium industries went down in September, roughly 2% compared to a year earlier and over 4% compared to August earlier this year.
Sources said this was due to rising inflation and instability in the dollar market, not to mention highest-ever costs of raw materials and other inputs globally, which all affect trade and consumption.
The main contributors to the sluggishness were food (down 8.25%), beverage (down 18%), textiles (down 3.6%) chemical products (down 50%) and apparel (down 2.2%), according to the data released by Bangladesh Bureau of Statistics (BBS).
Bangladesh’s major industrial production growth moderated below 4% year on year in July, the first month of the current FY23.
Usually the growth remains in double-digit territory.
The high-frequency data depict dearth-driven domestic consumption contraction while the external demand was slightly up as apparel and textiles grew despite a global crunch stemming from the Ukraine war in lockstep with the global pandemic.
The production estimation for medium and large-scale industries was made using the new base year 2015-16.
Eight major sectors out of 22 saw decline in a broad-based slowdown.
In FY22, the manufacturing sector had nearly 23% share in the gross domestic product or GDP, and the large-scale manufacturing segment accounted for nearly 11%.
Small, medium and micro had nearly 8% contribution.
The cottage industry had around 4% share.
The apparel sector, accounting for more than 80% of the export-market share, shifted into almost a reverse trend, shrinking over 2% in September over a month earlier in August.
In August, it rose over 43%.
Beverage sector also saw a reversal in September.
However, paper and related industry grew by 93% in September over its corresponding period a year before.
The printing and linkage industry surged 16% in September.
Motor vehicles, trailer and semi-trailer industry expanded 25% in September.
