Lebanon private sector activity slows down

The index which tracks activity dropped from 46 points in June to 45.4 in July.

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São Paulo – Private sector activity slowed in Lebanon, as per a survey from IHS Markit with sponsorship from Blominvest Bank. The BLOM Lebanon Purchasing Managers’ Index (PMI) slid from 46.0 points in June to 45.4 points in July. Scores lower than 50 show contraction, according to the Blominvest Bank.

The index hit its lowest since October 2016, and private sector demand remains moderate. Based on the PMI, the survey projects Gross Domestic Product (GDP) growing by less than 1% in Q3 this year. The index covers aspects including new orders, production, employment, supplier deliveries and stockpiles.

As per a report released by Blominvest along with the survey, real estate is particularly sensitive to the sluggish economic environment, countering a hike in tourist arrivals, and Lebanon’s fiscal deficit leads to major macroeconomic vulnerability. The country welcomed 853,000 tourists from January to June, up 3.2% year-on-year.

Translated by Gabriel Pomerancblum

Joseph Eid/AFP

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