Iran’s PMI continues to grow in fiscal month to late June

Iran’s new PMI data for the fiscal month of Khordad (May21 – June 21), released by the country’s Chamber of Commerce shows that the index has continued to grow but with a lower slope compared with that of the preceding month.

11 July 2022
ID : 33872
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Iran’s new PMI data for the fiscal month of Khordad (May21 – June 21), released by the country’s Chamber of Commerce shows that the index has continued to grow but with a lower slope compared with that of the preceding month.

The Purchasing Managers’ Index, known by its Farsi acronym Shamekh, for Iran’s overall economy has dropped from the record 56.17 in the previous month to settle at 54.73 in Khordad.   

Except for raw material inventories, all the other main sub-indexes were registered above the threshold (above 50).

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 “raw material inventory” sub-index (47.72) has improved from last month’s 45.34, while it is still under the threshold. It suggests that most economic activities, especially those in the services, agricultural and constructional sectors are still facing shortages of raw materials.

The increase of the forex rate in the Iranian market and a subsequent increase of the raw material prices have affected this sub-index.

The “new orders” sub-index (51.90) shows a decrease from 55.19 of the previous month. The fall is mostly seen in services, agriculture and construction sectors.  

The “raw materials price” sub-index (86.70) also registered one of its highest in the calendar month of Khordad although it was still less than the 19-month high of 92.75 in the previous month.

High forex rates have led to a high PMI reading in the raw materials prices. The sub-index grew even more strongly in the services and agricultural sectors.

The “business activities” sub-index (59.50) also registered one of its highest in this calendar month although it is still less than the figure of the previous month (61.37). The industry sector has made the biggest growth among other main parts of the economy.

The “employment” sub-index (52.41) has been growing this month with a lower slope compared to the 54.74 of the previous month. The lower growth of this index is largely seen to be due to a reduction of orders and raw materials in the services, agriculture, and construction sectors.

INDEX

Farvardin1401

(Mar-Apr2022)

Ordibehesht1401

(Apr-May2022)

Khordad1401

(May-Jun2022)

PMI

37.49

56.17

54.73

business activities

28.52

61.37

59.50

new orders

29.34

55.19

51.90

suppliers’ delivery time

48.16

58.60

60.21

raw material inventory

41.64

45.34

47.72

employment

50.85

54.74

52.41

raw materials price

83.26

92.75

86.70

finished goods inventory

52.16

49.63

53.42

exports of goods and services

38.65

50.70

50.01

price of goods and services

63.13

70.05

62.89

consumption of energy carriers

34.81

62.22

61.84

sales of goods and services

34.27

60.08

58.08

expectations for next month economic activities

72.05

43.82

50.54

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