Iran Chamber of Commerce has released the country’s new PMI data for the fiscal month of Aban (October 23 – November 22) which shows an increase in the Iranian economy for a third consecutive month.
Although the new PMI reading is 3.19 points less than 54.15 reported in the previous month, it is still above the threshold (above 50) which indicates that the Iranian economy continues to thrive but with a slower speed in comparison with the previous month.
The PMI reading (50.96) suggests that the businesses are suffering from the lack of liquidity so that they have problem supplying their raw material.
The refusal of the banks from paying loans and allocating hard currency to the businesses in a situation that the companies are facing a decline in demands is hampering the companies’ capability to increase their output so that the production lines of many of them are on the brink of shut down.
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 (51.43) has registered its lowest in the month under review.
The “new orders” sub-index (46.89) has also registered a three-month low.
The “exports of goods and services” sub-index has been declining for a fifth month in a row to settle at 49.81.
The “sales of goods and services” sub-index (49.22) has also dropped from the last month reading when it was reported at 53.47.
The “expectations for next month economic activities” was another sub-index to fall this month to register an eight-month decline. It was reported at 56.01 in the month under review.
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INDEX
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Shahrivar1402 (Aug-Sep2023)
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Mehr1402 (Sep-Oct2023)
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Aban1402 (Oct-Nov2023)
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PMI
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54.34
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54.15
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50.96
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business activities
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58.56
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58.60
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51.43
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new orders
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55.02
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53.38
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46.89
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suppliers’ delivery time
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56.40
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59.10
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55.56
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raw material inventory
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50.97
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47.10
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52.19
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employment
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48.20
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49.56
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52.39
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raw materials price
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68.86
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72.25
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66.91
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finished goods inventory
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53.18
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54.09
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52.90
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exports of goods and services
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48.77
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49.00
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49.81
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price of goods and services
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53.50
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59.96
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51.11
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consumption of energy carriers
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41.37
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58.25
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61.31
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sales of goods and services
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49.93
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53.47
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49.22
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expectations for next month economic activities
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70.50
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65.78
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56.01
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