Iran’s new PMI data for the fiscal month of Esfand (February 20 – March 20), released by the country’s Chamber of Commerce improved to a five-month high. The Purchasing Managers’ Index, known by its Farsi acronym Shamekh, for Iran’s overall economy has risen from 51.55 in the previous month to settle at 54.74 in ESfand.
The Statistics and Economic Analysis Center of Iran Chamber of Commerce, Industries, Mines and Agriculture, the sponsor and coordinator of the survey, announces the whole economy PMI data in a report every month.
The headline PMI is a number from 0 to 100, such that over 50 shows an expansion of the economy when compared with the previous month. A PMI reading under 50 indicates contraction and a reading of 50 implies no change.
PMI is an index of the prevailing direction of economic trends, aiming to provide information about business conditions to company directors, analysts and purchasing managers.
Except for “employment” index, all the rest main sub-indices were above the threshold in Esfand. The “employment” sub-index recorded a 17-month low in the month under review as it reduced dramatically in services and agricultural sectors.
The “business activities” sub-index (58.81) has increased compared to 55.50 in the previous month. The figure is the biggest PMI reading of the sub-index since the beginning of PMI reporting 30 months ago.
The “new order” sub-index (55.44) recorded a six-month high after it was recorded under the threshold for four consecutive months.
The "raw material inventory" sub-index (54.74) in Esfand, recorded the biggest PMI reading over 30 months of the PMI reading plan after it had declined for six consecutive months. The enhancement of this sub-index was mainly due to an improvement in services and agricultural sector.