Contraction in Private Sector’s Economy Persists: BLOM Lebanon PMI at 49.0 in April

The BLOM PMI signaled a slower contraction of private sector’s economic activity in April, and remained under the threshold of 50.0 separating growth from contraction, at 49.0. Foreign demand for the Lebanese firms’ products and services broadly stabilized during April after a recent downturn. Nevertheless, output and new orders levels remained in the contraction area. In line with falling workloads, Lebanese private sector’s firms scaled back their purchasing activity during the month. Commenting on the PMI results, Dr. Ali Bolbol, Economic Advisor at BLOMINVEST Bank, wondered if the “Lebanese economy (is) heading to a “new normal” of low and stagnant growth”. Although Dr. Bolbol believes that “the favorable impact from lower oil prices is yet to hit the real sector”, he added that “perhaps only a positive political “shock” could break the logjam and bring back life to private sector activity.”

Full details about February’s results are available in the attached BLOM PMI reports:

LB_PMI_ENG

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