Mar 23

Mar 23 Iran PMI Report - Bahman 1400 (January 21 - February 19)

PMI, 2022

Optimism and Anticipation

Iranian businesses are gearing up for a seasonal boom as demand ramps up ahead of the Nowruz holidays. ___STEADY_PAYWALL___

According to Purchasing Manager’s Index (PMI) data published by the Iran Chamber of Commerce, whole economy PMI rose to 51.55, the highest reading over the past four months.

The whole economy sub-index for output bounced to 55.70, up more than 8 points from the previous month on the back of higher output from the services and agricultural sectors.

Even as firms anticipate more demand, the impact on new orders remained minimal in the Iranian calendar month of Bahman (January 21 - February 19). The whole economy sub-index for new orders rose to 47.90, up from 43.14 in the previous month.

Continued uncertainty over the future of the Iran nuclear deal and the impact on the FX market still posed headaches for Iranian firms. For the fifth consecutive month, the sub-index for raw materials inventory remained below 50 at 47.29. However, with inflation easing some improvements can be seen in producer prices. The sub-index for the purchase price of raw materials and machinery fell to its lowest rate over the past 13 months at 73.65. The decline suggests the prices are rising at a slower pace.

Meanwhile, manufacturing PMI stood at 51.50, extending the sector’s run of expansion to six months. But the sector continues to face headwinds.

The sub-index for output fell to 50.57, its lowest rate over the past five months. Soft demand is reflected in the sub-index for new orders, which remained in contraction for the second consecutive month with a reading of 48.83.

Furthermore, continued volatility in the FX market and lack of liquidity continued to impact supplies of raw materials. The sub-index for raw materials inventory stood at 48.86, up from 46.21 in the previous month.

But with the coming of the Persian new year, optimism appears in order. The whole economy sub-index for the expectation of economic activity in the coming month stood at 61.77—its highest reading over the past four months. The manufacturing sub-index for economic expectations was 61.41.