Iran PMI Report - Bahman 1401 (January 21 - February 19)
Anticipation of the Nowruz holidays (which began on March 21) gave a boost to the Iranian economy in the calendar month of Bahman (January 21 – February 19), according to new purchasing managers’ index data published by the Iran Chamber of Commerce.
Whole economy PMI rose to 51.35, rising about the threshold of 50 after three months of economic contraction. The whole economy subindex for output rose to its highest level in eight months, reaching 53.45, led by a strong showing in Iran’s manufacturing sector.
Only two subindices remained below the threshold of 50. The subindex for new orders rose sharply, but ended at 49.60. Raw materials inventories continued to pose headaches for Iranian firms. Volatility in the forex market continued to disrupt the supply of raw materials.
With producer prices continuing to surge, the subindex for the inventory of raw materials and machinery stood at 42.20. Meanwhile, the subindex for the purchase price of raw materials and machinery jumped to 86.49, its highest rate over the past eight months.
Overall, a rebound in consumer demand lifted the Iranian economy. The whole economy subindex for sales reached its highest rate in seven months, rising to 57.21. But this rebound is seasonal—Iranian consumers always spend more in the weeks leading up to the Nowruz holiday—and optimism around the economic outlook remains muted.
The Iran Chamber of Commerce noted that although the manufacturing sector saw a strong rebound in output during Bahman, firm managers reported that the sector was still underperforming on a seasonally adjusted basis. The manufacturing subindex for new orders jumped to 63.14 as consumers, expecting ongoing price increases, rushed to buy goods in advance of the Nowruz holidays.
Manufacturing firms increased output in response to the increased demand. The output subindex rose to 58.73, its highest rate over the past eight months. With demand surging, the employment subindex also reached 53.45, its highest rate over the past five months. But the underlying economic headwinds remain and are likely to again drag down the performance of the manufacturing sector when the Nowruz holidays have passed.
Whole Economy PMI
Manufacturing PMI
Photo: Abed Mirmasoumi
