Iran's manufacturing Purchasing Managers' Index fell to 43 in the month to January 20, 2026, its lowest reading in seven months and marking 22 consecutive months of contraction, the Iran Chamber of Commerce Research Centre said on February 12.

The overall economy index stood at 43.4, both readings well below the 50 no-change threshold.

Output dropped to 41.2, its weakest since June 2025, while new orders fell to 39, the lowest reading since April 2020 during the coronavirus pandemic. The index for future production expectations hit 41, the lowest in the 88 survey rounds conducted since October 2018, suggesting companies are preparing for further output cuts and possible lay-offs.

Employment remained in contraction for the 15th consecutive month at 47.3, while the stock of purchased raw materials held deep in contraction at 42.5, reflecting supply-chain bottlenecks from import restrictions, foreign exchange volatility and internet disruptions.

The consumer price index climbed to 469.4 in the month to January 20, up 7.9% month on month, according to separate data from the Statistical Centre of Iran. The raw materials purchase price index hit a 44-month high, while the index for prices of manufactured goods rose to its strongest reading since May 2023.

The export index declined for the 15th consecutive month to a seven-month low, with internet outages and foreign currency repatriation difficulties compounding weak regional demand and a depreciating rial.

Most subsectors remained below the 50 threshold, including food, machinery, household appliances and vehicles. Oil and gas processing slipped into contraction at 45.9, while only wood and paper products and non-metallic minerals held above the threshold.

"Industrial managers have not been this pessimistic about the outlook even during the pandemic years or the brief 12-day conflict earlier in 2025," the report said.