PMI Report - Esfand 1399 (February 19 - March 20)
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Ending the Year on a High
The Iranian economy ended the year 1399 on a high according to Purchasing Managers’ Index (PMI) data published by the Iran Chamber of Commerce. Whole Economy PMI reached 54.73 while the sub-index for output rose to 58.39, the highest level registered to date.
The strong economic performance is related to higher consumer demand in the lead-up to the Nowruz holiday. The sub-index for sales jumped nearly 7 points to 60.30.
Manufacturing activity was also strong with Manufacturing PMI rising to 57.29 despite a small drop in output. The sub-index for output fell to 56.15 from 59.58 in the prior month. Manufacturers face continued challenges in managing inventories. The sub-index for raw materials and machinery inventory dropped to 49.42. Last month, the sub-index had surpassed the threshold of 50 for the first time in 29 months. The sub-index for raw materials purchases price also rose to 79.98.
Manufacturers are preparing for the seasonal lull in activity as the country moves into the long Norwuz holiday. The sub-index for expectations of economic activity in the coming month was 44.57. A continued rise in COVID-19 cases and the start of the Ramadan period are also expected to depress economic activity.
Whole Economy PMI
Manufacturing PMI
Photo: Abed Mirmasoumi
