Further Contraction in Private Sector’s Economy: BLOM PMI Slows to 48.0

BLOM PMI dropped to eight month low in May, reaching 48.0, down from 49.0 in April. The economic indicator which is based on a survey compiled by Markit, is sponsored by BLOMINVEST and provides an indication of operating conditions in Lebanon. In every month since its first release 2 years ago, the PMI has recorded below threshold separating economic growth from contraction (50.0). During May, the job market showed some resilience amidst the continuing downturn, and staff costs combined with increasing purchase prices led costs borne by Lebanese companies to increase for the first time in six months. Dr. Fadi Osseiran, General Manager at BLOMINVEST Bank, commented on the month’s results noting that “ companies’ margins are pressured from all sides: lower demand, rising business costs and a downward trend in selling prices. However, May’s PMI results show an interesting development: the traders’ use of air and sea transport routes seems to have revived foreign demand after a period of contraction, despite the resulting higher purchase prices.” Dr. Osseiran added “Perhaps stirring economic activity will have to depend more on innovative business decisions which look beyond traditional processes.”

To read the full report, click on the link below:

LB_PMI_ENG_PR

 

 

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