The Purchasing Managers’ Index for Iran's overall economy settled at 47.62 for the 11th month of the current fiscal year (Jan. 21-Feb. 19), indicating that the economy remains in recession, according to the Statistics and Economic Analysis Center of the Iran Chamber of Commerce, Industries, Mines and Agriculture.
The center has measured PMI, known by its Farsi acronym Shamekh, for the country’s economy as a whole reviewing the last five months.
The overall PMI for the economy fell from 48.22 in the month ending Dec. 21, 2019, to 44.26 in the month leading to Jan. 20, but improved to 47.62 in the month ending Feb. 19.
The headline PMI is a number from 0 to 100, such that over 50 represents an expansion 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.
According to the report, the business output sub-index decreased from 49.61 in the ninth fiscal month (Nov. 22-Dec. 21, 2019) to 42.65 in the 10th fiscal month (Dec. 22, 2019-Jan. 20) but climbed to 48.77 in the 11th fiscal month (Jan. 21-Feb. 19).
The new orders sub-index dropped from 45.70 in the ninth month to 40.41 in the 10th month but jumped to 46.33 in the 11th month.
The supplier deliveries sub-index, which measures how fast deliveries are made, decreased from 54.76 in the ninth month to 50.67 in the 10th month to 50.35 in the 11th month.
The raw materials inventory sub-index increased from 41.37 in the month ending Dec. 21 to 41.81 in the month ending Jan. 20, but fell to 37.76 in the month ending Feb. 19.
The PMI reading of employment sub-index dropped from 48.79 in the ninth month to 48.52 in the 10th month, but climbed to 51.03 in the 11th month.
To calculate PMI, seven secondary criteria were also surveyed by the center, namely raw materials purchase prices, warehouse inventory, exports, product price, fuel consumption, sales and production expectations.
The raw materials purchase prices sub-index decreased from 78.41 in the month ending Dec. 21 to 74.79 in the month ending Jan. 20, but improved to 84.05 in the month ending Feb. 19.
The warehouse inventory sub-index plunged to 42.55 in the month ending Feb. 19 from 45.88 in the month ending Jan. 20 and 48.05 in the month ending Dec. 21.
The exports sub-index decreased from 45.09 in the month ending Dec. 21 to 40.97 in the 10th month, but increased to 45.29 in the 11th month.
The prices of manufactured products or services sub-index slid to 54.66 in the 10th month from 55.74 in the ninth month, but improved to 63.13 in the 11th month.
The fuel consumption sub-index decreased to 60.59 in the month ending Jan. 20 from 61.41 in the month ending Dec. 21, but climbed to 66.92 in the month ending Feb. 19.
The sales sub-index dipped from 46.77 in the ninth month to 42.55 in the 10th month, but improved to 47.35 in the 11th month.
Business output forecasts for the following month’s sub-index rose from 49.98 in the month ending Dec. 21 to 58.35 in the month ending Jan. 20, but declined to 50.49 in the month leading to Feb. 19.
