Following a decelerating contraction the private sector economy during the first month of the year, the business conditions at Lebanon’s private sector companies revealed another collapse in February. In details, BLOM PMI recorded its lowest reading in three months during the second month of 2016, as it registered 47.4 points compared to 49.1 points a month earlier. The monthly gauge revealed lower production levels at the Lebanese companies, as well as fewer new orders. However, foreign demand deteriorated in February at the slowest rate seen since last September. Mr. Marwan Mikhael, Head of Research at Blominvest bank, noted that “The slowing pace of contraction in January was short lived, as the BLOM PMI reached a 3 month low in February. It seems like local demand was mostly behind the deteriorating activity as exports orders barely declined. The declining new orders could be linked to fading hopes regarding a potential breakthrough in the country’s political deadlock following the upbeat performance of last month. Looking forward, the slowdown of economic growth in the GCC countries due to the sharp decline in oil prices, in addition to the political inertia on the domestic front will continue to weigh on the economic activity of the private sector”.
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