Bangladesh's business activity shrank this past April from its previous month's measure, according to a maiden multi-stakeholder parameter prepared with foreign partnerships.

The private PMI or purchasing managers' index was unveiled Thursday at a function in Dhaka, where State Minister for Finance Ms Waseqa Ayesha Khan was present.

The PMI for April was recorded at 62.2 points, down 2.1 points from March reading, shows the PMI launched for the first time in Bangladesh.

The Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh jointly developed the PMI while technical supports came from Singapore Institute of Purchasing and Materials Management (SIPMM). It was funded by UK International Development.

State Minister for Finance Ms Waseqa Ayesha Khan attended the PMI-launching programme as chief guest while acting British High Commissioner Matt Cannell as special guest.

The PMI is an economic indicator which helps understand the economic health of a country. It helps in identifying the turning points in the business cycle and closely tracks key economic variables.

Such index is measured on regular surveys of senior executives, involving in the manufacturing and other key sectors.

This PMI is a number, and a number greater than 50 indicates an expansion and below 50 contraction while equal to 50 stagnation.

This latest PMI reading was attributed to a slower expansion rate in key sectors of services and construction.

But it got compensated somewhat following a faster expansion rate in agriculture and manufacturing sector.

The PMI consists of four broad sectors in Bangladesh--- agricultural, manufacturing, services, and construction.

Agribusiness-sector reading was recorded at 60.9, up 5.2 points from March last, while manufacturing at 74.5, up by 6.1 points.

On the other hand, services-sector reading dropped to 56.2 in a fall by 7.4 points from March and construction to 63.8, down by 3.9 points, the PMI data show.

The index is usually divided into manufacturing PMI and non-manufacturing PMI in many developing and developed economies.

In the meantime, Bangladesh PMI conducted surveys on 400 private firms representing 53 per cent from services sector, 23 per cent from manufacturing, 12.5 per cent from construction and 11.5 per cent from agriculture sector.

They will conduct such survey each month on the sectors to prepare the PMI data.

Chairman of the Policy Exchange Bangladesh Dr M. Masrur Reaz presented the first-ever Bangladesh PMI report during the launching event.

He argued: "Manufacturing sector upped in April mainly due to new orders, new exports, factory output, input purchases and supplier deliveries."

The agriculture sector recorded the fourth month of expansion after having a contraction reading in December.

On the other hand, construction sector posted slower expansion on grounds of input costs and higher interest in the banking industry.

Services sector also saw slower expansion for higher input costs.

The MCCI president, Kamran T. Rahman, delivered welcome address while Stephen Poh, executive director of SIPMM, elaborated on the Bangladesh PMI report.