The Purchasing Managers’ Index (PMI), published by BlomInvest, rose to 48.3 points in July from 47.8 the previous month. This marks the highest level recorded in three months. However, “commercial conditions remain difficult,” according to the index results.
Commenting on the result, BLOM Bank’s Director of Economic Research, Dr. Ali Bolbol, said that the increase indicates a slight rise in commercial activity by Lebanese private sector companies, although the PMI remains below the neutral level of 50 points.
The economist added that the improvement in the PMI is mainly attributable to growth in the PMI sub-indices, namely production and new orders. The rise in the new export orders index has helped revive the economy, he said, as has the influx of tourists and expatriates, which has, to some extent, boosted new orders. He assured that there is “an impulse of optimism and flexibility in the Lebanese economy, underlined by the possibility of recovery in light of current challenges.”
He concluded by asserting that, given that “Lebanon is facing complex dynamics, the rise in the PMI index is a promising indicator of gradual stabilization and opportunities for growth in the future.”
The PMI is an indicator based on the monthly results of 400 companies. It measures private commercial activity.
