Iran’s Purchasing Managers’ Index (PMI) reached a 10-month high during the fiscal month of Esfand, spanning February 20 to March 19, 2024, according to data released by the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA). The index rose by 0.74 points to 55.79, signaling continued expansion in the country’s economic activity.

Despite the upward trend, the increase was more modest compared to the same period last year. Analysts attributed the slower growth to rising foreign exchange rates and the overlap of the month with Ramadan, which typically slows economic activity. Elevated currency fluctuations have driven up the cost of raw materials, leading many companies to raise the prices of their products.

The PMI, an indicator ranging from 0 to 100, reflects the state of economic conditions by measuring variables such as purchasing, production, and new orders. Readings above 50 indicate economic expansion from the previous month, while those below 50 suggest contraction. The index is used widely by business leaders and economists to assess current trends and plan accordingly.

The ICCIMA’s Statistics and Economic Analysis Center, responsible for compiling the data, noted that ongoing political and economic uncertainties continue to challenge companies’ ability to forecast future conditions. This uncertainty has complicated planning and investment decisions within the private sector.

The monthly PMI report covers a broad spectrum of industries and is considered a key barometer of the overall economic environment in Iran. The latest figures suggest a cautiously optimistic outlook for economic activity, despite headwinds related to currency volatility and seasonal factors.