PMI Lebanon at Seven-month Low in May, Signaling Faster Economic Contraction

 The economic contraction of private sector’s activity in Lebanon deepened during the month of May, which is highly associated with the failure of Lebanese politicians in reaching a consensus over a new electoral law by May 15th, the due date assigned for the electoral law. In this context, commenting on May 2017’s PMI Dr Ali Bolbol, Economic Advisor at BLOMINVEST BANK, explained: “The spurt in the PMI following the Presidential elections in October 2016 is proving to be short lived. This is reflected in May 2017’s PMI that dipped to 46.6, down from 47.5 in April 2017 and at its lowest reading since October last year. Output and new export orders fell at faster rates; while employment, purchases, and backlogs of work witnessed further declines. Not surprisingly, average prices for goods and services were lower because of competitive pressures, and so were overall input costs. What is surprising, however, is the further deterioration in the firms’ future expectations, which registered the lowest level of confidence in the series’ history. Perhaps the unfulfilled expectations from the presidential elections are to be blamed, the more reason for elites to start resolutely fixing the country’s political and economic problems so as to reverse these trends and sentiments as quickly as possible.”

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PMI_ENG_1706_Press Release

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