Following the security breaks in the second half of June, the Lebanese private economy contracted at a faster pace as companies’ output and new orders declined. BLOM PMI thus scored 47.9 points in July, down from its best 2014 score of 49.1 in June, marking the persistence of economic contraction compared to the neutral level of 50 points that separates growth from contraction. Surveyed companies reported lower new work both from domestic and foreign origins, and therefore slightly reduced their purchasing levels. Meanwhile, the modest rise of prices seen in June was offset by a sharp decline during July to re-encourage sales, supported by lower cost pressures on companies. Commenting on the PMI survey, sponsored by BLominvest Bank and compiled by Markit, Mr. Marwan Mikhael, Head of Research at Blominvest bank noted that “despite that some economic indicators improved compared to last year and to the previous month such as real estate transactions and capital inflows, the economic performance seems to remain tilted to the downside.” Full details about July’s sub-indicators are available in the attached BLOM PMI reports.
BLOM PMI Press Release_En BLOM PMI Report_En