The BLOM Lebanon PMI inched up from 45.5 in August to 47.6 in September, implying a slowdown in the rate of contraction. September’s PMI remained below the 50.0 mark, due to a hard drop in output levels at businesses and a fall in export sales. However, companies raised their stocks of purchases for the third time in the past four months and businesses added their workforce for the first time in three months. Even though private sector businesses faced higher costs, output prices kept declining in an attempt to encourage client spending.
Commenting on September’s results, Dr Ali Bolbol, Economic Advisor at BLOMINVEST Bank, said:
“The Lebanese economy has yet to get a notable break, still mired in the quagmire of domestic and regional instabilities. Although September’s PMI increased to 47.6, driven mainly by the containment of the ISIS-related disturbances in the east of the country and by the positive employment numbers, a sustainable economic recovery is still far from assured. A necessary condition to jolt the economy on that path is putting the internal political house in order and embarking on the crucial step of electing a president.”
BLOM Lebanon PMI Historical Readings
Source: Markit, Blominvest Bank