Dhaka, March 8 -- Bangladesh's service sector saw a moderate rebound in the first quarter of FY26, although private sector credit growth to key service-related activities slowed notably during the same period, reflecting a cautious lending environment amid broader macroeconomic adjustments.

According to the latest provisional data, the service sector posted a 3.67 per cent growth in Q1 FY26, up from 2.51 per cent in Q4 FY25 and 2.96 per cent in Q1 FY25.

Most service sub-sectors recorded improved performance, signalling a gradual recovery in domestic demand and business activities.

However, financial and insurance activities, alongside real estate and professional, administrative and support services, failed to maintain momentum.

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