Iran’s new PMI data for the fiscal month of Mehr (September 23 – October 22), released by Iran Chamber of Commerce shows that the country’s production is under the pressure of soaring raw material prices.
The Purchasing Managers’ Index, known by its Farsi acronym Shamekh, for Iran’s overall economy has slightly fallen from 55.55 in the previous month to settle at 54.76 in Mehr.
Although the PMI reading of Mehr is above 50, it is less than that of the previous month which indicates that the overall economy has grown more slightly.
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 Mehr indicated that all the main sub-indexes – except for the raw material inventory and employment – had a PMI reading above 50. Services and agriculture sectors contributed to the high PMI reading in this month.
The “business activities” sub-index in Mehr (56.16) have increased more slightly from 67.64 in the past month. The increase in the industry sector was less than other sectors.
The “new order” sub-index (55.16) also continued to grow in the fiscal month of Mehr.
The "supplier deliveries" sub-index, which measures how fast deliveries are made, rose from 54.51 in the month ending in September 22 to 64.7 in Mehr (ending in October 22).
This sub-index registered its highest increase since the beginning of the survey plan more than two years ago.
The report also suggests that the PMI reading of "raw material inventory" sub-index was below the threshold last month (49.98).
The PMI reading of “employment” was also reported at 47.87, the lowest in the past 11 months.
The PMI reading also indicates that the purchase price of raw materials and supplies needed for production are at an eleven-month record high which impose heavy pressure on the country’s production sector.