Oct 20

Oct 20 Iran PMI Report - Shahrivar 1400 (August 23 - September 22)

PMI, 2021

Strong One-Month Performance

Iran’s economy returned to growth in the Iranian calendar month of Shahrivar (August 23 – September 22) according to new purchasing managers’ index (PMI) data published by the Iran Chamber of Commerce. ___STEADY_PAYWALL___

Whole economy PMI rose 8.96 points to 55.55, a new record for the index which launched two years ago. The improvement in economic activity was driven by a rise in output. The whole economy sub-index for output rose to 57.64, up over 17 points from the previous month as the economy moves past the summer’s electricity blackouts and COVID-19 lockdowns.

However, businesses continue to face significant cost pressures related to soaring raw material prices. The sub-index for the purchase price of raw materials declined slightly, but remained above 80. The continued slide of the rial and its concurrence with a period of high global commodities prices pose a challenge. The price increased being passed on to consumers are continuing to depress demand, although sales did return to growth with the sub-index reaching 57.64, the highest level over the last 6 months.

The rebound in economic growth was driven by the manufacturing sector. Manufacturing PMI rose more than 12 points to 57.66 as the sector returned to expansion. The output sub-index for the sector reached 61.96 while the new orders sub-index rose to 58.93, the highest rates recorded over the past four months.

Still, companies face supply chain bottlenecks. While the sub-index for raw materials inventories rose to 48.75 from 42.18 in the previous month, it remained below the crucial level of 50. The business climate remains challenging. Manufacturers reported concerns over export volumes as cost pressures and related price increases reduce the competitiveness of Iranian goods in international markets.