Iran’s monthly PMI rallies to above threshold

Iran Chamber of Commerce has released the country’s new PMI data for the fiscal month of Shahrivar (August 22 – September 22) which is above the threshold (above 50).

According to the new PMI reading, Iran’s monthly PMI (50.34) has registered its highest in four months. The country’s last month PMI stood at 49.97.

The survey suggests that the supply of raw materials and the growing increase of raw material prices continue to affect the Iranian production sector.

Unwillingness of specialized manpower to work is another problem of the Iranian economy, according to the PMI findings.

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 “new orders” sub-index hit 44.84 in the month under review to register its highest in four months.  

The “employment” sub-index has however declined to settle at 48.20, posting its lowest of the past eight months.

The “exports of goods and services” sub-index (48.77) has also fallen for a second war in a row.

The “sales of goods and services” continued to decline for a third consecutive month to settle at 49.93.