In the PMI (May 1404) project, the PMI for the entire economy has stopped at a neutral level of 50 in May this year, after adjusting for seasonal effects, and the PMI for the industrial sector has also been reported to be below 50, indicating a slowdown in industrial activities in May.

While economic conditions were expected to improve in May compared to April, frequent power outages have been cited as one of the most important obstacles to production in May.

In addition, declining raw material inventories, rising production costs, declining consumer purchasing power, and liquidity constraints have put additional pressure on the manufacturing sector. These factors, along with currency problems, have led to a decline in production volumes, a drop in new orders, and limited exports.

The decline in the amount of industrial production has reduced the financial capacity of companies to retain or attract new human resources, contributing to a decline in employment in the industrial sector. At the same time, economic-political uncertainty has also caused confusion for companies in planning for the coming months.
As the Shamakh report in February 1403 predicted pessimistic conditions in the coming months, in May, recessionary conditions are evident with a decrease in industrial production.

Composite Purchasing Managers' Index for the Whole Economy

According to the latest survey conducted in May, the Purchasing Managers' Index for the Whole Economy of Iran, which is a measure of the overall business conditions on a monthly basis, reached 50.3 after seasonal adjustment. Although the value of this index has increased slightly compared to the previous month, it is still in the neutral range of 50.

This index was affected by a decrease in four of its five main components in May. Thus, the amount of products produced or services provided, the amount of new customer orders, the speed of order fulfillment and delivery, and the inventory of raw materials or purchased supplies have all decreased.