BLOM PMI rose back to reach 49.5 points in January, up from 49.3 points last month, reflecting the slowest pace in economic contraction seen in over a year and matching that of November 2014. The private sector companies witnessed slower contractions in output and new orders in January, although orders placed by foreign customers deteriorated compared to the previous month. Employment stabilized and “the steadiness of the employment index and staff costs around the 50 figure indicates that households are able to maintain their purchasing power”, commented Dr. Fadi Osseiran, General Manager at Blominvest Bank. On the supply side, private sector companies reported deflated cost burdens for the second month, and consequently lowered their selling prices. This ”may boost consumption in the future” noted Dr. Osseiran who also hoped “ that the coming months may see better output numbers that will translate into a higher PMI”.
Full details about January’s results are available in the attached BLOM PMI reports: