Iran Chamber of Cooperatives has measured the PMI for the country’s real-estate and construction sectors, under the Farsi acronym “Shamekh”, during the period under review.
The new data show the overall PMI settled at 52.78 from 64.36 in the third Iranian month, indicating an 18% decline month-on-month, Mehr News Agency reported.
PMI is an indicator of the health of economic sectors. It provides information about current business conditions to decision-makers, analysts and purchasing managers.
Raw material inventory, employment conditions, new orders, supplier deliveries and export/production conditions were among the criteria quizzed, yielding a final score of between 1 and 100.
If a business scores 50, it means that no change has been perceived compared to the previous month, while scores higher or lower than 50 indicate that the business is booming or stagnating respectively.
Housing PMI Fields
The housing PMI is based on five major survey fields: "new orders", "raw material inventory", "production", "supplier deliveries" and "employment".
The survey includes 12 questions about business conditions and any changes, whether it be improving, no changes or deteriorating.
It is measured through a monthly survey sent to senior executives of 100 companies active in the real-estate sector. It is based on five major survey areas: "new orders" with a coefficient of 30%, "raw material inventory" (10%), "production" (25%), "supplier deliveries" (15%) and "employment" (20%).
The "new orders" sub-index stood at 36.11 in the month ending July 21, indicating a 34.09% decline compared with the previous month’s reading of 54.79.
The "supplier deliveries" sub-index, which measures how fast deliveries are made, decreased from 54.25 in the month ending June 20 to 44.44 in the month ending July 21, indicating an 18.08% decline.
The "raw materials (construction materials) inventory" sub-index slumped 18.51% from 48.4 in the month ending June 20 to 39.44 in the month leading to July 21.
The "employment" sub-index decreased 8.99% from 53.72 in the third month to 48.89 in the fourth Iranian month.
To calculate housing PMI, seven secondary criteria were also surveyed by ICC, including "raw materials purchase prices", which stood at 93.09 in the month ending June 20. The sub-index decreased 7.5% to stand at 86.11 in the month ending July 21.
The "warehouse inventory" slid 8.47% to 47.22 in the fourth Iranian month from 51.59 in the third fiscal month.
The "exports" sub-index settled at 43.33 in the month ending July 21 from 46.81 in the month ending June 20, registering a 7.43% decrease.
The "prices of products or services" grew 2.29% to stand at 79.44 in the month ending July 21 from 77.66 in the month ending June 20.
The "fuel consumption" fell 8.49% from 55.85 in the third Iranian month to 51.11 in the fourth Iranian month.
"Sales" dropped 20.54% from 48.94 in the third month to 38.89 in the fourth month.
And, the "performance expectations for the following month" sub-index settled at 35.55 in the month ending July 21 from 46.81 in the month ending June 20, showing a 24.05% decline.