Bangladesh's Purchasing Managers' Index (PMI) pointed to a slower expansion rate in business activities in the key sectors of agriculture, manufacturing, construction and services in June compared to the month prior.

The PMI, which is seen as a good measure of overall economic growth, hit 63.9 last month, down 6.2 points from March's 70.1.

The PMI is a number from 0 to 100, with a reading above 50 indicating expansion and a reading below 50 representing contraction.

Policy Exchange Bangladesh disclosed the data yesterday through a press release.

The agriculture sector recorded a sixth month of expansion after last contracting in December, but the rate of expansion slowed, with the agriculture PMI dropping from 79.3 in May to 70.2 in June.

The sector exhibited a slower expansion rate for the indexes of new business, business activity, employment, input costs, but the order backlog index contributed to a faster expansion rate, Policy Exchange Bangladesh said.

Similarly, the manufacturing sector saw a slower expansion rate, sliding from 76.3 in May to 61.7 in June.

This was attributed to slower expansion for the key indexes of new orders, new exports, factory output, input purchases, employment, supplier deliveries, imports, and input prices. The order backlog index posted a faster expansion rate.

The construction sector also posted a slower expansion rate for the indexes of new business, construction activity, employment, and input costs. As a result, the construction PMI fell from 79.3 in May to 65.1 in June.

The services sector saw the slightest dip, from 64.3 in May to 63.5 in June, posting a slower expansion rate for the indexes of new business and business activity, whereas faster expansion rates were recorded for the indexes of employment and input costs.

In terms of the future business index, slower expansion rates were recorded for all key sectors of agriculture, manufacturing, construction, and services, it added.

The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and private research organisation Policy Exchange Bangladesh jointly launched the index few months back, with support from the UK Foreign, Commonwealth, and Development Office (FCDO).