Iranian monthly PMI highlights worries around industry sector
Date
6/23/2024 5:41:05 AM
(MENAFN) Iran's latest Purchasing Managers' Index (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 significant concerns about the country's industry sector. The PMI data indicates challenges in accessing raw materials, primarily due to issues with currency allocation for purchases and new regulations affecting import orders. These factors are anticipated to impact the industry sector adversely and hinder overall economic improvement.
The overall PMI for Iran was reported at 55.9 for the month, reflecting a substantial month-on-month increase in economic activities. However, after seasonal adjustments, the PMI was revised to 50.7, signaling a more modest improvement in the Iranian economy.
The Statistics and Economic Analysis Center of ICCIMA, which sponsors and coordinates the survey, releases comprehensive PMI data monthly. The PMI, ranging from 0 to 100, serves as an indicator of economic trends: a reading above 50 indicates economic expansion compared to the previous month, below 50 indicates contraction, and 50 denotes no change.
Key sub-indices within the PMI report underscore specific challenges and trends within Iran's economy. The "business activity" sub-index stood at 57.7 initially but adjusted to 50.4 after seasonal factors were considered. This adjustment indicates stable business activity following the conclusion of the previous month's New Year holidays.
In contrast, the "new orders" sub-index registered at 46.8, reflecting a decline in demand compared to the previous month. This decrease underscores challenges in stimulating new economic activity within the surveyed period.
Furthermore, the seasonally adjusted "raw material inventory" sub-index reported a reading of 47.5, indicating a month-on-month reduction in available raw materials. This decline suggests potential supply chain disruptions or constraints affecting industrial operations reliant on imported inputs.
Overall, the PMI data provides crucial insights into Iran's economic conditions, offering valuable information for company directors, analysts, and purchasing managers. As Iran navigates these challenges, monitoring future PMI reports will be essential in gauging economic resilience and identifying opportunities for policy interventions aimed at sustaining growth and stability in the industrial sector.
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