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Private sector activity continued to expand in January, albeit at a slower pace, as the Purchasing Managers' Index (PMI) eased to 53.9 from the previous month.
The moderation signals sustained growth momentum, though at a more measured rate amid softer global conditions.
Released on Sunday, the latest PMI reading showed expansion across agriculture, manufacturing and services, while construction returned to growth after contracting in December, underscoring a broadly resilient domestic economy.
Agriculture recorded its fifth consecutive month of expansion, although momentum weakened.
New business and overall activity continued to grow, but employment and input costs declined. Order backlogs in the agricultural sector also remained in contraction, albeit at a slower pace.
The manufacturing stayed in expansion for the 17th straight month, though growth softened compared to December last.
New orders, factory output, imports, input prices and supplier delivery times all increased, even as export receipts remained subdued.
Of concern, new export orders, input purchases, finished goods inventories and employment declined, while order backlogs returned to expansion.
The construction sector moved back into expansion after contracting in the previous month. Growth was recorded in new business, construction activity and input costs, while employment and order backlogs continued to fall.
The services sector, which contributes more than 50 per cent to GDP, marked its 16th consecutive month of expansion, with activity accelerating in January.
New business, overall activity, employment, input costs and order backlogs all posted gains.
"Overall, the latest PMI readings indicate that the economy experienced slower expansion, with weak global supply chain recovery and cautious order placement weighing on manufacturing exports," said Dr M Masrur Reaz, Chairman and Chief Executive Officer of Policy Exchange Bangladesh.
"The agriculture sector also showed signs of slowdown following the late autumn paddy harvests," he added.
However, Dr Reaz noted that continued expansion in the future business index across all key sectors points to sustained optimism in the period ahead, particularly following the elections.
Jasimharoon@yahoo.com