Iran’s new PMI data for the fiscal month of Bahman (January 21, 2023 – February 19, 2024), released by the country’s Chamber of Commerce, has registered a significant growth.
The new PMI was reported at 55.05 posting a nine-month record high after three months of PMI readings around the threshold (around 50).
The rise in the monthly PMI is mainly due to increasing demand which tends to happen each year as the country nears the Persian New Year holidays.
The PMI findings, however, indicate that forex fluctuations have surged the costs of raw materials, creating problems for the country’s production sector.
High costs of production inputs and forex fluctuations on the eve of the holy month of Ramadan have reduced employment in some companies.
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 “business activities” sub-index (57.06) has registered a four-month record in the month under review after reducing for two consecutive months.
The “new orders” sub-index (58.18) has also posted its highest since the survey began 53 months ago.
The “raw material price” sub-index has registered a four-month high to settle at 68.80 in the month under review.
The “finished goods inventory” sub-index has been recorded at 49.78 which shows a decline in comparison to that of the preceding month.
The “exports of goods and services” sub-index (49.36) is indicative of a decline in the country’s exports for the eighth month in a row.
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INDEX
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Azar1402 (Nov-Dec2023)
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Dey1402 (Dec2023-Jan2024)
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Bahman1402 (Jan-Feb2024)
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PMI
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49.88
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50.84
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55.05
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business activities
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48.83
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49.50
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57.06
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new orders
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47.06
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51.71
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58.18
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suppliers’ delivery time
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57.05
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54.28
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55.10
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raw material inventory
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48.64
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49.85
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52.12
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employment
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50.65
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49.12
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49.27
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raw materials price
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67.45
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68.75
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68.80
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finished goods inventory
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49.54
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50.03
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49.78
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exports of goods and services
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43.91
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47.77
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49.36
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price of goods and services
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60.06
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53.40
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54.89
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consumption of energy carriers
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60.14
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60.84
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55.13
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sales of goods and services
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48.50
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48.23
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58.72
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expectations for next month economic activities
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58.23
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63.94
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56.59
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