PMI to work as economic pulse tracker

The Purchasing Managers Index (PMI), a newly launched initiative, will serve as a key indicator of the country's economic health, according to M Masrur Reaz, chairman of Policy Exchange Bangladesh (PEB).

The index will be published monthly starting in May, he said during a focus group discussion on PMI for Bangladesh with journalists at the Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka on Saturday.

MCCI, in collaboration with PEB and supported by the Foreign, Commonwealth, and Development Office, will oversee the index publication.

Masrur Reaz emphasised PMI's role in providing early insights into economic conditions, market dynamics, and sectoral trends. This information, he stated, will be valuable for informed business and investment decisions, as well as timely policymaking.

The PMI, an economic indicator based on the perceptions of purchasing managers across four key sectors – agriculture, construction, manufacturing, and services – offers a score ranging from 0 to 100 based on major survey areas such as demand, inventory, production, deliveries and employment.

Scores above 50 suggest expansion, while values below depict contraction within a particular sector.

PEB Senior Manager (Market and Policy Advisory) Hasnat Alam delivered a brief presentation on the programme.

Additionally, MCCI Secretary General and Chief Executive Officer Farooq Ahmed highlighted the widespread use of PMI as a tool for gauging national economic health, citing its established presence in Asian countries like China, Japan, Indonesia, Vietnam, and India.