This information emerged from the report of the Purchasing Managers' Index (PMI) jointly published by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh on Tuesday.

According to the report, the Purchasing Managers' Index stood at 52.9 in June, down from 62.8 in May. That is, the index decreased by 9.9 points in the span of one month.

Generally, an index above 50 indicates expansion in the economy, while below 50 indicates contraction. Accordingly, although the economy remained in an expansionary phase in June, the pace was relatively slow.

M. Masrur Riaz, Chairman of Policy Exchange Bangladesh, said that while the June index indicates expansion in the economy, the picture varies by sector. According to the forecast of future business conditions, expansion is expected to continue in the agriculture, construction, and service sectors. Additionally, the manufacturing sector is also expected to return to a positive trend.

The report revealed a mixed picture across sectors. While the agriculture and service sectors remained in expansion, the index for both sectors declined. The agriculture sector index fell from 70 in May to 64.8 in June, and the service sector index dropped from 62.3 to 54.6. However, new business and employment in the agriculture sector increased for the tenth consecutive month, although the volume of pending work decreased. On the other hand, the service sector maintained expansion for the 21st consecutive month.

On the other hand, the manufacturing and construction sectors faced contraction again. After two consecutive months of expansion, due to a decline in new orders and employment, the manufacturing sector index fell from 64.1 in May to 48.8 in June. Similarly, the construction sector index, which had somewhat recovered in May, dropped from 52.9 to 40.2 in June.