Iran PMI Report - Ordibehesht 1400 (April 21 - May 21)
Clouds on the Horizon
Iran’s business climate continued to show sings of recovery during the calendar month of Ordibehesht (April 21 – May 21) according to Purchasing Managers’ Index (PMI) data published by the Iran Chamber of Commerce.
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Following the slowdown in the Iranian calendar month of Farvardin (March 21 – April 20), during which Whole Economy PMI fell to 39.65 due to the Nowruz holidays and lingering impact of COVID-19, the index reached 53.84 in Ordibehesht, the second highest level since the Iran Chamber of Commerce began tracking Whole Economy PMI. The sub-index for output reached 58.64, the highest level to date.
However, the sub-index for new orders declined to 49.80 in a sign of uncertainty around the impact of Iran’s presidential election, the fate of the nuclear negotiations, and the continued stability of Iran’s currency. The sub-index for raw materials prices was 76.25, indicating that production costs continue to rise. The sub-index for raw materials and machinery inventory stood at 49.49, registering a slight decline compared to the prior month. High production costs and continued inflation will continue to erode demand, which could slow the economic recovery in the coming months.
Strong performance in the manufacturing sector saw the whole economy sub-index for employment rise to 52.05, the highest level on record. Manufacturing PMI jumped to 63.00 while the new orders sub-index for the manufacturing sector rose to 61.81.
The sub-index for raw materials and machinery inventory reached 53.59, the highest rate recorded since the PMI report was first issued 32 months ago. The manufacturing sector continues to add jobs, with the sub-index for employment reaching 59.66.
At the time of the survey, manufactures were optimistic about further improvements in the business climate. The sub-index for expectations of economic activity was a healthy 60.66.
But the recently slowdown in the Vienna negotiations and the difficulties with electricity supply that have led to significant blackouts in Iran where highlighted as future risks by researchers at the Iran Chamber of Commerce which will likely be reflected in the forthcoming PMI data.
Whole Economy PMI
Manufacturing PMI
Photo: Abed Mirmasoumi
