TEHRAN - Iran’s new PMI data for the fiscal month of Ordibehesht (April 20 – May 20, 2024), released by the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) has raised concern about the industry sector.

The PMI data suggests that failing to allocate the currency needed for the purchase of raw materials as well as the new regulations for placing import orders can limit access to raw materials over the next months, affecting the industry sector and the improvement of economic conditions. 

Iran’s overall PMI was reported at 55.9 in the month under review which shows a significant month-on-month rise in the economic activities, while after seasonal adjustments, the PMI reading for this month was estimated at 50.7 which indicates a slight improvement in the Iranian economy.

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.

The “business activity” sub-index was reported at 57.7 which shrank to 50.4 after seasonal adjustment. Although the New Year holidays of the previous month has come to an end, this index remained almost the same of the preceding month. 

The “new orders” sub-index (46.8) also shows a relative decrease in demand compared to figures of the preceding month.

The seasonally adjusted reading of the “raw material inventory” sub-index was reported at 47.5 which is indicative of a month-on-month decline in raw materials.

The survey also put the “sales of goods and services” sub-index at 48.9 after seasonal adjustment which show a remarkable drop in sales compared to the previous month when the figure stood at 53.6.

EF/