ICCIMA: Iran’s PMI slips 0.8 points to 49.8 in November

Figures released by the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) show that Iran’s economy, particularly its manufacturing sector, remained in contraction in November amid rising production costs and weakening domestic demand.

News ID: 2002375

According to ICCIMA figures released on Saturday, the purchasing managers’ index (PMI) for the Iranian economy fell to 46.6 in the calendar month to November 21, down from 47.4 recorded a month earlier.

ICCIMA has reported PMI readings below the 50 threshold for the past 20 months. As a general rule, a PMI close to 50 suggests that an economy or sector may be approaching the end of a contraction and moving toward expansion.

For this reason, many analysts view sustained PMI readings above 49 as broadly indicative of a gradual recovery or expansion in economic activity.

ICCIMA compiles its monthly PMI data based on survey responses from purchasing managers across various sectors of the Iranian economy.

Its figures showed that Iran’s manufacturing PMI fell to 49.9 in the calendar month ending in late November, marking its lowest level in three months.

The data showed that factory inventories had dropped to their lowest level in the past 60 months in November, while the employment index remained below the 50 mark for the sixth consecutive month.

Iran’s Tasnim news agency, which cited the figures in a report, said that ICCIMA’s initial November PMI reading had pointed to continued weakness among businesses and factories.

The report said that declining inventories and reduced hiring weighed on the PMI in November, adding that a sharp rise in hard-currency prices significantly increased the cost of industrial inputs. This, in turn, squeezed project financing and dampened market demand, it said. /isna