The country's economy remained on an expansion track for the fourth consecutive month in January this year, according to an unofficial estimate, as growing exports, seasonal consumption trends and a boost in the agro supply chain are being considered potential drivers of this growth.

In January, the PMI increased by four points from the previous month, reaching a record high of 65.7, according to the Bangladesh Purchasing Managers' Index (PMI) released yesterday.

However, confidence in new business investments and expansion remains sluggish, the index noted.

The PMI is a monthly publication by the Metropolitan Chamber of Commerce and Industry (MCCI) and the Policy Exchange Bangladesh (PEB), with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM).

Regarding business confidence, the PMI said that it remains low, particularly among firms catering to the domestic market, due to sluggish demand, rising business costs and energy supply disruptions.

The index also said that the economy's future dynamism will depend on clarity regarding the timeline and roadmap for transitioning to an elected political government.

The PMI is a pioneering initiative aimed at providing timely and accurate insights into the country's economic health, helping businesses, investors and policymakers make informed decisions.

The latest PMI reflects a faster rate of expansion in the agriculture, construction, and services sectors, while the manufacturing sector posted slower growth.

The agriculture sector expanded for the fourth consecutive month at an accelerated pace, showing faster growth in business activity.

New business and order backlogs returned to expansion, but the employment index reverted to contraction and input costs rose at a slower rate.

The manufacturing sector expanded for the fifth consecutive month in January but at a slower pace, with reduced growth in new orders, exports, factory output, input purchases, imports, input prices and supplier deliveries.

The finished goods index expanded at a faster rate, while employment returned to growth, and the order backlog index contracted at a slower rate.

The construction sector expanded for the second consecutive month at a faster pace, with increased growth in new business, construction activity, and input costs. However, the employment index returned to contraction and order backlogs contracted at a faster rate.

The services sector expanded for the fourth consecutive month at an accelerated pace, with faster growth in new business, business activity, employment, and order backlogs. The input costs index also returned to expansion.

In terms of the Future Business Index, all key sectors -- agriculture, manufacturing, construction, and services -- posted slower expansion rates.