Manufacturing drops 4% in September from August

BTJ Desk Report
Textile News

Manufacturing in large and medium industries went down in September, roughly 2% compared to a year earlier and over 4% compared to August earlier this year.

According to the media reports, due to rising inflation and instability in the dollar market, not to mention the highest-ever costs of raw materials and other inputs globally, which all affect trade and consumption.

The main contributors to the sluggishness were food (down 8.25%), beverage (down 18%), textiles (down 3.6%) chemical products (down 50%), and apparel (down 2.2%), according to the data released by Bangladesh Bureau of Statistics (BBS).

Bangladesh’s significant industrial production growth moderated below 4% year on year in July, the first month of the current FY23.

Usually, the growth remains in double-digit territory.

The high-frequency data depict dearth-driven domestic consumption contraction while the external demand was slightly up as apparel and textiles grew despite a global crunch stemming from the Ukraine war in lockstep with the global pandemic.

The production estimation for medium and large-scale industries was made using the new base year 2015-16.

Eight major sectors out of 22 saw a decline in a broad-based slowdown.

In FY22, the manufacturing sector had a nearly 23% share in the gross domestic product or GDP, and the large-scale manufacturing segment accounted for nearly 11%.

Small, medium, and micro had nearly 8% contributions.

The cottage industry had around 4% share.

The apparel sector, accounting for more than 80% of the export-market share, shifted into almost a reverse trend, shrinking over 2% in September over a month earlier in August.

In August, it rose over 43%.

The beverage sector also saw a reversal in September.

However, paper and related industries grew by 93% in September over the corresponding period a year before.

The printing and linkage industry surged 16% in September.

Motor vehicles, trailer, and semi-trailer industry expanded by 25% in September.


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