Iran’s Purchasing Managers’ Index (PMI) rose to its highest level in 20 months in October, signaling a modest recovery in the overall economy, according to data released by the Iran chamber of commerce.
The overall seasonally adjusted PMI for the economy stood at 47.4, up 1.3 points from September, reflecting an improvement in production, new orders, delivery speed, and inventory levels. However, it remains below the neutral threshold of 50, indicating that the broader economy is still in contraction. Employment, meanwhile, declined slightly during the month.
The industrial sector PMI improved more significantly, rising to 53.4, marking its second consecutive month above 50 after seven months of stagnation. The gains were driven by higher production, stronger new orders, and increased hiring. However, the index showed declines in delivery speed and raw material inventories compared with the previous month.
Analysts attribute the rebound in industrial activity to improved energy supply, which temporarily eased production bottlenecks. Yet, persistent challenges—including rising input costs, export barriers, foreign exchange obligations, and difficulties in accessing raw materials—continue to weigh on the sector’s outlook. Further policy support, they say, will be key to sustaining the fragile recovery in the months ahead.
