In December 2024, BlomInvest’s Purchase Managers Index (PMI) reached its highest level in five months. In Lebanon, it scored 48.4 points in November 2024, as opposed to 48.1 the month before.
According to Helmi Mourad, a research analyst at Blom Business Bank, the PMI improved for the second consecutive month, going from a low of 45 points in October 2024 to 48.8 points in December 2024. This improvement was caused by a slight contraction in business activity by Lebanese private sector companies, as well as a minimal decline in new orders and export orders.
He added that “it is interesting to note that companies participating in the survey expressed positive expectations regarding business activity over the next twelve months, with the future production index recording the highest value of 61.8 points.”
“These linked positive expectations to the ceasefire agreement between Hezbollah and Israel, and the presidential elections scheduled for January 9, 2025,” he continued.
He also hoped this would be followed by the formation of a new government that would implement the reforms which “we urgently need to attract additional local and foreign investment.”
The PMI is an indicator based on the monthly results of 400 companies. It measures private commercial activity. It indicates a drop-in activity if its value is below 50 points. If it is lower than that of the previous month, it means that the decline is continuing.
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