PMI for Local Industries Plunges Below Threshold

EghtesdaOnline: A ccording to the Statistics and Economic Analysis Center of Iran Chamber of Commerce, Industries, Mines and Agriculture, the Purchasing Managers' Index for local industries settled at 45.6 in the current Iranian year’s tenth month (Dec. 22-January 20), down from 51.69 in the preceding month (Nov. 22-Dec. 21).

News ID: ۷۵۲۲۳۳

07 February 2023

A ccording to the Statistics and Economic Analysis Center of Iran Chamber of Commerce, Industries, Mines and Agriculture, the Purchasing Managers' Index for local industries settled at 45.6 in the current Iranian year’s tenth month (Dec. 22-January 20), down from 51.69 in the preceding month (Nov. 22-Dec. 21).

PMI is an indicator of the economic health of manufacturing and services sectors. It provides information about current business conditions to companies’ decision-makers, analysts and purchasing managers.

The headline PMI is a number from 0 to 100. A PMI above 50 represents an expansion, under 50 indicates a contraction and a reading of 50 shows no change compared with the previous month. The further away from 50, the greater the level of change.

PMI is based on a monthly survey sent to senior executives of more than 400 companies. It is based on five major survey areas: new orders (30%), raw material inventory (10%), production (25%), supplier deliveries (15%) and employment (20%).