Iran Chamber of Commerce, Industries, Mines and Agriculture

Iran’s new PMI improves slightly, Chamber report says

Iran’s business activity showed signs of stabilization in Farvardin (March 21-April 20), as the country’s Purchasing Managers’ Index (PMI) improved from the previous month and the shock from recent war-related disruptions eased, a report by the research arm of the Iran Chamber of Commerce showed.

The PMI survey, compiled by the chamber’s research center, showed that the overall economy index declined at a slower pace than in the previous month, indicating a partial easing of the shock caused by the US-Israeli imposed war. However, the headline index remained below the neutral threshold of 50, suggesting that business conditions continued to deteriorate. The report said the Iranian economy was facing a combination of domestic recession, war-related shocks and disruptions to economic activity, although the pace of deterioration had moderated compared with the previous month. It noted simultaneous declines in production, new orders, sales, employment and inventories of raw materials, signaling that the current downturn could persist over the longer term. According to the report, businesses were hit by disruptions linked to the imposed war, including interruptions to international internet access, restrictions on foreign trade, damage to parts of the country’s industrial infrastructure and heightened uncertainty. These pressures have added to existing challenges facing Iranian firms, including high inflation, falling demand, foreign currency constraints and liquidity shortages, the report said. On the supply side, declining availability of inputs and raw materials has emerged as a growing risk for industrial activity. The chamber’s research center said a return to normal economic activity would require a coordinated policy response, including greater macroeconomic stability, easier access to foreign currency and raw materials, targeted liquidity support for businesses, fewer administrative restrictions and measures to restore confidence among economic actors.
Iran Chamber of Commerce, Industries, Mines and Agriculture

Iran Chamber of Commerce, Industries, Mines and Agriculture

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