Bangladesh’s economy witnessed a mild slowdown in December last year, with the purchasing managers’ index (PMI) dropping by 0.5 points from November to 61.7, according to a joint report by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB).
The contraction is attributed to reduced growth in the agriculture and services sectors, though manufacturing gained momentum and the construction sector expanded.
The manufacturing sector saw its fourth consecutive month of growth, driven by increases in new orders, exports, factory output and supplier deliveries.
Expansion in the agriculture sector, which maintaining growth for three consecutive months, was slower.
New business contracted, and business activity grew at a reduced rate. However, employment rebounded, and input costs rose at a faster pace, domestic media outlets said citing the report.
Despite challenges in many sectors, the report highlighted optimism, citing faster expansion in future business across manufacturing, construction and services.
Political instability and economic uncertainty remain significant hurdles, the report cautioned.
