Economic activity in Lebanon’s private sector worsened in October, as indicated by the Purchasing Managers Index (PMI) published by BlomInvest.
The index decreased from 49.1 in September 2023 to 48.9 in October. This decline can be attributed to tensions stemming from the Hamas-Israel conflict, which spilled over into Lebanon.
Regarding this data, Fadi Osseiran, the Managing Director of BlomInvest, emphasized that regional tensions have created “an atmosphere of economic crisis and instability, impacting the October 2023 PMI.” Despite these challenging conditions, he noted, “the exchange rate has surprisingly remained stable during this period at LBP 89,700 to the dollar.”
Operating conditions for private sector companies in Lebanon deteriorated in October, impacting business performance. This decline was characterized by the sharpest contraction in new order volumes since February, as well as a drop in new export sales.
Simultaneously, supplier performance decreased for the first time since May 2023, and business confidence reached its lowest level in three months.
On a positive note, employment increased for the second consecutive month.
The PMI, produced by BlomInvest in collaboration with Markit, is an indicator based on the monthly results of 400 companies. It assesses private commercial activity. A PMI value below 50 points indicates a decrease in business activity, and a value lower than the previous month suggests a renewed economic downturn.
