Iran’s Chamber of Commerce has released the country’s new PMI data for the fiscal month of Azar (November 23 – December 21) which is below the threshold for a second consecutive month but has declined with a lower slope compared with the preceding month.
According to the new PMI reading, Iran’s monthly PMI grew 1.75 points from that of last month to settle at 49.14.
It suggests that the Iranian entrepreneurs are still suffering from forex fluctuations, and difficulties in the supply of raw materials and sales problems.
Most of the main sub-indexes were registered below the threshold (below 50) in the month under review.
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 (50.51) slightly improved from a 15-month low of last month but still remained around the threshold. The fall in business activities was mainly due to a reduction in the construction sector.
The “new orders” sub-index (48.47) has been posted below the threshold for a third month in a row but has fell with a lower slope compared to that of the preceding month.
The sub-index has been declining in all the three main sectors of the economy but the most reduction was registered in the construction sector.
The “raw material inventory” sub-index (46.41) has posted a significant decline compared to 51.26 of the preceding month. Experts believe that the sales of raw materials have declined due to a rise in the forex rate causing problems for the companies in meeting their needs for raw materials.
The “employment” sub-index (49.32) dropped to a nine-month low, excluding the calendar month of Farvardin. It shows the most decline in the agricultural and services sectors.
The “raw materials price” sub-index increased with a higher slope compared with 78.49 of the preceding month to settle at a six-month high of 85.25 this month.
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INDEX
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Mehr1401
(Sep-Oct2022)
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Aban1401
(Oct-Nov2022)
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Azar1401
(Nov-Dec2022)
|
|
PMI
|
51.19
|
47.39
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49.14
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|
business activities
|
51.60
|
46.24
|
50.51
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|
new orders
|
46.82
|
43.91
|
48.47
|
|
suppliers’ delivery time
|
54.78
|
51.73
|
49.75
|
|
raw material inventory
|
46.28
|
51.26
|
46.41
|
|
employment
|
52.00
|
48.88
|
49.32
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|
raw materials price
|
71.80
|
78.49
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85.25
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|
finished goods inventory
|
52.99
|
48.86
|
50.49
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|
exports of goods and services
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47.05
|
45.69
|
50.84
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|
price of goods and services
|
57.45
|
55.47
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58.58
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consumption of energy carriers
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46.11
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49.80
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67.25
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|
sales of goods and services
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42.56
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48.21
|
48.15
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|
expectations for next month economic activities
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59.59
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52.62
|
55.01
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