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This index, commonly used to gauge economic trends in manufacturing and service sectors, will collect monthly data from 500 institutions nationwide.
The chairman and CEO of Policy Exchange Bangladesh (PEB), M Masrur Reaz, revealed plans for the PMI index’s debut at a recent event held at the Metropolitan Chamber of Commerce and Industry (MCCI), in capital Dhaka.
The inaugural PMI index is slated for release in May, with the MCCI, in collaboration with PEB, spearheading its publication, backed by support from the UK government’s Foreign, Commonwealth & Development Office (FCDO).
Masrur highlighted the PMI’s significance in providing both the private sector and government with insights into the previous month’s economic performance and forecasts for the current month.
The index will draw from data across four key sectors: manufacturing, agriculture, construction, and services.
Masrur stressed that significant fluctuations in sectoral data prompt closer scrutiny by policymakers.
Measured on a scale of 0 to 100, a PMI above 50 signals expansion, while below 50 indicates contraction.
A reading of 50 suggests an economy in stasis.
Masrur underscored the PMI’s role in uncovering sudden shifts within sectors, facilitating deeper analysis.
Countries globally, including India, Vietnam, Japan, and Indonesia, utilise the PMI index.
Masrur clarified that the process is purely observational, aiming to identify economic issues like recessions or epidemics.
Farooq Ahmed, secretary general of MCCI, assured that the PMI index adheres to observational principles, avoiding interference with the economy even as he pledged MCCI’s commitment to liaise with the government if any issues arise.
Fibre2Fashion News Desk (DR)