After a short breath in April, the private sector’s economy lost momentum in May on the back of political and social confusion. BLOM PMI scored 48 points down from 48.5 points last month, still below the neutral threshold of 50 points separating economic growth from contraction. Lebanese private institutions reported a faster deterioration in their new business orders as well as in their production levels. Competitive pressures also constrained output prices to a new decline.
“Uncertainties surrounding the Presidential elections and the public sector’s wage scale have restrained consumers and consequently demand”, noted Dr. Fadi Osseiran, GM of Blominvest bank who sponsors this monthly survey to measure the economic activity of the private sector in Lebanon. The survey, compiled by Markit, investigates more than 400 private companies in Lebanon to calculate the index. Full details are available in the attached BLOM PMI reports.