Feb 7

Feb 7 Iran PMI Report - Dey 1400 (December 22 - January 20)

PMI, 2021

Holding Out for Spring

Iran’s economic growth slowed in the Iranian calendar month of Dey (December 22 – January 20) according to new purchasing managers’ index (PMI) data from the Iran Chamber of Commerce. ___STEADY_PAYWALL___

Whole economy PMI fell to 46.94—a reading below 50 indicates that the economy is in contraction. Weak demand and reduced output were behind the slowing economic performance. The whole economy sub-index for new orders fell to 43.14, the lowest reading in the last six months. The sub-index for output fell to 47.07 in turn. Weak demand has troubled Iran’s economy since the summer, but researchers at the Iran Chamber of Commerce point to recent exchange rate volatility as an exacerbating factor.

A volatile foreign exchange market has also increased pressure on raw materials inventories. The relevant sub-index fell to 43.14, its lowest rate in six months.

The more negative economic outlook has seen employers cut back on hiring, responding in part to increased fuel costs. The whole economy sub-index slipped below 50 to settle at 49.91.

The manufacturing sector, usually the bright spot in Iran’s economy, also saw worse performance as manufacturing PMI fell to 50.31 on the back of weak demand and reduced output. The sub-index for new orders fell to 44.90, while the sub-index for output fell to 50.54.

Still, the economic outlook remains positive, according to those surveyed by the Iran Chamber of Commerce. The whole economy sub-index for expectations of economic activity stood at 61.62. Iranian firms appear to be hoping that the lead-up to the Persian new year, typically a time of higher consumer expenditures, will boost their prospects.