DHAKA, Sept 8, 2026 (BSS) - Bangladesh’s economy demonstrated signs of resilience in August, with agriculture maintaining its expansion for the 12th consecutive month and construction returning to growth, while overall economic activity remained close to the neutral threshold, according to the latest Bangladesh Purchasing Managers’ Index (PMI).

The overall PMI stood at 49.9 in August, marking a significant 7.9-point drop from July's reading of 57.8, reflecting a slight moderation in economic activity amid temporary pressures on manufacturing and services.

The agriculture sector remained a key source of strength, with its PMI rising 1.3 points to 56.5 in August. The sector recorded its 12th consecutive month of expansion, supported by continued growth in new business and business activity, while employment also increased.

The construction sector also returned to expansion, reaching 52.4 in August. Construction activity and employment moved into expansion, indicating renewed momentum in the sector.

Although manufacturing moderated during the month, the sector’s performance reflected temporary challenges. Its PMI fell 18 points to 47.4, while input prices continued to increase. Order backlogs remained in contraction, although the pace of contraction slowed, and supplier delivery times remained unchanged.

The services sector recorded a PMI of 49.2 in August. Despite entering contraction for the first time in 22 months, new business and business activity continued to expand, albeit at slower rates. Input costs and order-backlog contraction also moderated.

Business respondents maintained cautious but positive expectations about the coming months. Many described their current business situation as satisfactory and expressed hope for further improvement.

 They also identified lower business costs, stronger financial support and a more supportive policy environment as important factors for strengthening activity.

The report said improvements in energy supply, easier access to finance, better control of operating costs and business-friendly tax and policy support could further strengthen business confidence and accelerate the recovery of economic activity.

Policy Exchange Bangladesh Chairman and CEO Dr M Masrur Reaz said the August PMI reading of 49.9 showed that Bangladesh’s economic activity remained broadly near the neutral threshold despite temporary pressures on manufacturing and services.

He said continued expansion in agriculture and the return of construction to growth highlighted the economy’s underlying resilience.

“The moderation in manufacturing partly reflects weaker monthly exports and temporary energy disruptions associated with LNG infrastructure maintenance,” he said.

Dr Reaz said improved energy availability, stronger export demand and supportive measures to restore business confidence could help the economy regain momentum and put it on a firmer growth trajectory.

The Future Business Index showed a slight moderation in optimism across all sectors, although overall expectations for future business conditions remained cautious but positive.

The Bangladesh PMI is an initiative of the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB), developed with support from the UK Government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM).