Frequent price hikes continued to weigh on the local economy, with local industry growing at less than 4% year-on-year in July, the first month of FY23.
This month-on-month growth is well below the last mark as it grew by more than 15% in the entire past FY22.
High-frequency data depicts slowing domestic consumption, while external demand rose as clothing and textiles rose despite a global crisis, induced by the corona pandemic and Ukraine.
The Bangladesh Bureau of Statistics or BBS prepares the index of medium and large scale manufacturing industries on a monthly basis, which contributes a lot to the economy of the country.
The data, released last week, shows that growth in the industrial sector was just 3.38% in July compared with the same month a year earlier.
Growth slowed across a range of manufacturing, covering food, leather and allied, wood and wood products, and cork, fabricated metal products except machinery, hardware electricity and the manufacture of transport equipment.
Leather manufactures recorded the slowest growth at 43% last July compared to the corresponding period of the previous financial year.
Growth in transportation equipment manufacturing was over 41%, fabricated metal product manufacturing excluding machinery by over 27% and food manufacturing by 20%.
However, the manufacturing of beverages, textiles, clothing, paper and paper products, pharmaceuticals and medical equipment, basic metals, and the manufacturing of motor vehicles, trailers and semi-trailers have recorded growth.
Motor vehicle, trailer and semi-trailer manufacturing recorded the strongest growth at 285.5%, followed by furniture manufacturing.
The other fastest growing industrial sectors were beverage manufacturing (24%), apparel manufacturing (22%), paper and paper products (nearly 17%) and basic metal manufacturing (nearly 11%). %).
Domestic demand for consumer goods has been held back by price increases disproportionate to the ability of the common man to buy.
In addition to the global phenomenon of exponential inflation, many economists and analysts attribute the domestic shortage to price fixing by certain trade unions.