Iran’s PMI index up 2.8 to 49.8 in month to late October: ICCIMA

Figures released by the Iran Chamber of Commerce (ICCIMA) show that the country’s economy, especially its manufacturing sector, has returned to expansion after nearly half a year of contraction.

The ICCIMA reading of the purchasing managers' index (PMI) of the Iranian economy rose to 49.8 in the calendar month to October 21 from 47.1 in the previous month.

The ICCIMA has reported PMIs of below 50 for six consecutive months to late October. However, experts say a return to areas near the 50-mark, which separates expansion from contraction on a monthly basis, is a sign of hope.

That comes as many economic institutions view PMI readings above 49 over time as generally indicating an expansion of the overall economy.

Iran’s Fars news agency said in a report that ICCIMA’s first reading of Iran’s October PMI had been at 52.3, indicating that the country’s economy is being bolstered by higher manufacturing output.

It said the increased supply of electricity to Iranian industries in September and October, which came after several months of restrictions to prevent power cuts in Iran’s household sector, was the main reason for the rebound in manufacturing activity in the country.

ICCIMA figures showed that Iran’s manufacturing PMI had grown to 54.5 in the calendar month to late October from 47.8 in the previous month.

The Fars report said that fluctuations in the price of hard currencies in recent months, which were caused by regional military tensions between Iran and the Israeli regime, were also another reason for lower industrial activity and lower economic growth in Iran.

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