Lebanon’s PMI Signals Contraction in Private Sector Economy in May

Economic activity within the Lebanese private sector remained firmly in contraction area in May, as revealed by Lebanon’s Purchasing Managers’ Index (PMI), released by BLOMINVEST Bank and compiled by Markit. BLOM PMI stood at 44.8 during the fifth month of 2016, well below the 50 mark which separates economic growth from contraction, but slightly better than the 44.1 recorded in April. Commenting on the May 2016 PMI results, Maya Mantach, Head of Equity Research at BLOMINVEST Bank, said: “The long lingering slowdown in the economic situation is starting to show an aggravating cumulative effect. In the last couple of months, the PMI results have clearly drawn a steeper downward trend. Domestic demand is rapidly waning, exports orders are diminishing, and these are in turn affecting pricing and employment levels. This cycle can quickly become vicious in the absence of structural reforms.  The private sector has lost its ability to rebound solely on good news or stabilization of security; the government can no longer afford to remain idle.”

Full details about May’s sub-indicators are available in the links below:



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