Due to various reasons, including labour dissatisfaction, incidents of vandalism and fires have occurred in hundreds of industrial factories across different parts of the country over the past month. During this period, production and marketing processes were halted in more than 200 factories. The Metropolitan Chamber of Commerce and Industries (MCCI) reported that the industry has incurred losses of around Tk 5,000 crore.
Faruque Ahmed, the Secretary General of MCCI, stated this during the release of the Purchasing Managers Index (PMI) at the MCCI office in Gulshan Police Plaza, Dhaka, on Sunday. MCCI Director Tarek Mohammad Ali and Policy Exchange Senior Manager Hasnat Alam were also present.
Faruque Ahmed explained that since the formation of the new interim government in August last year, there has been growing dissatisfaction among workers in various areas, including Narayanganj, Savar, and Ashulia. Hundreds of factories have been vandalised and set on fire, leading to losses of approximately Tk 5,000 crore. However, the actual losses could be significantly higher, as this figure was not determined through a formal survey but based on discussions with various factory owners. He added, "We have sought assistance from various authorities, including the Home Affairs Adviser, to ensure the safety of factories. I hope the government will swiftly address the labour movement issue and restore normalcy."
In this context, following the record contraction in July, the country's economic situation slightly improved in August. According to the latest PMI index, prepared by the Metropolitan Chamber and Policy Exchange, the country's PMI increased by 6.6 per cent, reaching 43.5 points in August.
In June, the PMI was 63.9 points, but in July, it fell to 36.9, a drop of 27 points in one month. According to the MCCI, the prolonged agitation and violence during July-August severely disrupted supply chains, negatively impacting agriculture, manufacturing, construction, and services.
Towards the end of August, labour protests erupted, and several districts of the country experienced flooding, which hindered the expected increase in the index.
The PMI is a survey-based indicator of business conditions, active in over 80 countries worldwide. The index is published based on the opinions of executives from more than 500 private companies across the agriculture, construction, manufacturing, and services sectors.
PMI is measured on a scale from 0 to 100, where a score above 50 indicates economic expansion compared to the previous month, a score below 50 indicates contraction, and a score of 50 means no change.
In August, the PMI for the agriculture sector was 38.7, up from 35.4 in July, reflecting an expansion of 3.3 points. The manufacturing PMI in August was 47.7, compared to 34.1 in July, an increase of 13.6 points.
However, the PMI for the construction sector declined in August compared to July. MCCI reported that government project construction had been halted for the past two months due to the unrest, and companies have been progressing very slowly with construction work. This contributed to the overall decline in the construction PMI in August.
