Contraction of economic activities continued in Iran in the calendar month of Mordad (July 23-August 22), according to purchasing managers’ index (PMI) data released by Iran Chamber of Commerce.
The Purchasing Managers’ Index, known by its Farsi acronym Shamekh, for Iran’s overall economy settled at 46.59 in Mordad continuing to fall with a lower slope than 44.62 in the previous month.
The Statistics and Economic Analysis Center of Iran Chamber of Commerce, Industries, Mines and Agriculture, the sponsor and coordinator of the survey, announces the whole economy PMI data in a report every month.
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The headline PMI is a number from 0 to 100, such that over 50 shows an expansion of the economy when compared with the previous month. A PMI reading under 50 indicates contraction and a reading of 50 implies no change.
PMI is an index of the prevailing direction of economic trends, aiming to provide information about business conditions to company directors, analysts and purchasing managers.
The survey in Mordad indicated that all the sub-indexes – except for supplier deliveries and employment – had a PMI reading under 50.
The “production” sub-index posted the lowest PMI reading
The increase in employment sub-index (52.23), which happened in spite of the fall in construction sector, was mainly due to the increase in employment in services and agricultural sector.
The “new orders” sub-index (43.89) continued to fall in Mordad. The increase happened due to uncertainty in political decisions and sharp price fluctuations.