BLOM Purchasing Managers’ Index Recorded a Six-month Low in August

The BLOM Lebanon PMI dropped from 47.9 in July to 45.5 in August, indicating a faster rate of contraction. August’s PMI recorded a six-month low, due to the security issues which hit demand and new orders, and led the private sector to decrease output, employment levels, and purchasing activity. Subsequently, inventory levels fell after rising for 2 months. Moreover, competitive pressures and weakness on the demand side pushed average output prices down for the first time in the past 8 months.

Commenting on August’s results, Dr. Fadi Osseiran, General Manager at Blominvest Bank, said:

“Clashes between the Lebanese army and ISIS militants in the Bekaa region, in addition to the ongoing domestic political deadlock concerning the presidential elections, had their toll on the economy and particularly on tourism. Hence demand weakened and the level of business activity fell sharply with new export orders being hit by the worsening security situation in Iraq. The outlook for the coming few months remain challenging on both the security and political fronts, thus weighing on economic activity.”

BLOM Lebanon PMI Historical Readings

 

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Source: Markit, Blominvest Bank

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