Updated
Updated · The Business Standard · Aug 10
Bangladesh PMI Jumps to 57.8 in July as Manufacturing Hits 65.4
Updated
Updated · The Business Standard · Aug 10

Bangladesh PMI Jumps to 57.8 in July as Manufacturing Hits 65.4

3 articles · Updated · The Business Standard · Aug 10

Summary

  • Bangladesh’s composite PMI rose 4.9 points to 57.8 in July from 52.9, moving further above the 50 mark that separates expansion from contraction.
  • Manufacturing drove the gain, surging 16.6 points to 65.4—the strongest reading in the survey period—as new orders, exports, output, employment, imports and supplier deliveries all expanded.
  • Services extended growth to a 22nd month at 56.0, agriculture stayed in expansion at 55.2 despite slowing, and construction remained below 50 at 49.3 though it rebounded sharply from June’s 40.2.
  • Policy Exchange linked the improvement to the highest monthly export earnings in 12 months, better foreign-exchange conditions and business optimism after FY2026-27 budget deregulation measures.
  • The Future Business Index pointed to further gains across all four sectors, but contracting order backlogs suggest the recovery pipeline is still thin after four years of inflation above 9% and weak private credit growth.

Insights

Why did Bangladesh’s manufacturing PMI jump to a record 65.4 even as garment exports and factory utilization still showed signs of weakness?
Can Bangladesh turn July’s export-led business surge into lasting recovery while inflation, bad loans and cautious bank lending still weigh on growth?