Iran’s new PMI data for the fiscal month of Aban (October 23 – November 21), released by the country’s Chamber of Commerce shows that the Iranian businesses are still struggling with persistent high prices and a reduction of raw material inventory.
The Purchasing Managers’ Index, known by its Farsi acronym Shamekh, for Iran’s overall economy has slightly fallen from 54.76 in the previous month to settle at 51.7 in Aban.
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.
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.
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The survey in Aban indicated that the PMI has continued to fall to near the threshold in this month. Soaring inflation, lack of raw materials and a reduction in demand contributed to the low PMI reading in Aban.
Industry was the main sector keeping the PMI above the threshold.
The “business activities” sub-index in Aban (53.86) have increased a little more slightly from 56.16 in the past month. The increase in the services and construction sectors was less than other sectors.
The “new order” sub-index (47.38) dropped to a three-month low in the fiscal month of Aban. High prices and shrinking liquidity have caused a reduction in new orders.
The "supplier deliveries" sub-index, which measures how fast deliveries are made, dropped from 64.07 in the month ending in October 22 to 54.60 in Aban (ending in November 21).
The "raw material inventory" sub-index (44.62), which measures how fast deliveries are made, also registered a seven-month low in Aban.
The drop in this sub-index which has been felt in all economic sectors has been largely due to high prices, high foreign currency price, and severe lack of liquidity.
The PMI reading of “employment” was also reported at 53.72 up from 47.84 last month.