Bangladesh’s industrial sector recorded a subdued performance in September, with key export-linked industries posting steep declines despite earlier signs of momentum at the start of the fiscal year.
Fresh data from the Bangladesh Bureau of Statistics (BBS) show that large industries — which make up nearly 11% of the country’s US $ 461 billion economy — expanded by only 2.43% in September 2025. The figure marks a sharp deceleration from just over 3% in August and almost 7% in July, the opening month of the 2026 fiscal year.
The BBS industrial production index reveals that seven of the 23 major subsectors contracted in September. The readymade garments sector, which carries a dominant 61% weight in the index, shrank by 5.6% year-on-year. Textiles, the second-largest component with an 11.6% weight, fell by more than 6% over the same period. Leather and related goods fell by 9.68%
The industrial slowdown diverges markedly from the Bangladesh Purchasing Managers’ Index (PMI), which rose by 0.8 points to 59.1 in September — signalling faster expansion.
Some manufacturers expect a rebound in the coming months, noting that earlier disruptions — particularly challenges in opening letters of credit — have begun to ease.
