Latest SHAMKH Report Indicates Decline in Economic Activities in Tir Month

The latest report of the Purchasing Managers' Index (SHAMKH) indicates a renewed decline in economic activities in Tir 1402 (June-July 2023), placing them in a critical condition. The website Farda-e Eghtesad, analyzing the SHAMKH report, states that according to the opinions of economic activists, power outages, severe liquidity shortages, and lack of cooperation from banks in providing facilities for securing necessary raw materials have put additional pressure on production and company costs. Consequently, many businesses, fearing a decrease in demand, did not raise prices, which has pushed some into the loss margin. The SHAMKH report is published monthly based on information obtained from surveys of economic activists and businesses by the Research Center of the Iran Chamber of Commerce. In the latest report related to Tir month, the Purchasing Managers' Index for the entire economy of Iran reached 50.63, indicating a decrease of 2.65 units compared to the previous month. Additionally, the SHAMKH index for the industrial sector decreased by 5.21 units to 50.09, which is considered the threshold between recession and growth. The industry's problems, aside from sanctions, include complex administrative bureaucracy and cumbersome regulations. Alongside these issues, the lack of currency allocation from the Central Bank has become one of the fundamental problems of the industry over the past year. As a result, most industries have been unable to obtain the necessary currency for importing raw materials and required machinery. The production of food items, including red meat and chicken, has also been affected by this issue.