The drop was attributed primarily to political unrest following a student protest that led to Prime Minister Sheikh Hasina being forced to resign after over 15 years and flee to India.

Backed by the UK department for international development, the Singapore Institute of Purchasing and Materials Management works with the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh to compile the PMI, whose first data was released early this year.

The country’s PMI in April was 62.2.

The unrest affected all major sectors, according to the MCCI and Policy Exchange Bangladesh, which have been surveying 500 domestic firms since the beginning of the year.

The manufacturing sector in July saw a sharp decline after seven months of expansion, with significant drops in new orders, exports, factory output and supplier deliveries.

Conversely, input purchases and input prices expanded more rapidly, and the finished goods index returned to expansion. Imports contracted, and the order backlog index saw slower growth, domestic media outlets reported.

Looking ahead, slower expansion is anticipated in manufacturing.

Fibre2Fashion News Desk (DS)