A broken ATM with graffiti on it in Beirut. (Credit: Joseph Eid/AFP)
BEIRUT — The BLOM Lebanon Purchasing Managers’ Index (PMI) reached a nine-year high in July, new figures released by the bank indicate.
Here's what we know:
• Purchasing Managers’ Indexes are based on monthly surveys of private sector companies that ask businesspeople whether various factors in their business have improved or worsened compared to the prior month. A reading above 50 indicates an improvement on the previous month, while readings below 50 show a worsening.
• Lebanon’s PMI rose to 49.9 in July, just a fraction below the 50 no-change mark, indicating that business conditions are still worsening, albeit at the slowest rate since 2013. The country’s PMI reached its lowest point in April 2020, at around 30.9.
• The July employment index clocked in at 50.2, indicating a slight increase in private sector employment. This is the second month in a row of modest private sector employment growth, being the first time in seven years that two back-to-back months of employment growth were reported.
• Ali Bolbol, BLOMINVEST Bank’s chief economist, said: “As would be expected, a summer recovery seems to be helping the Lebanese economy adjust to a relatively better equilibrium. After two years of Covid and acute political and economic instability, expatriate Lebanese and tourist spending are helping business conditions regain some of their buoyancy.” He noted that most businesses remain pessimistic about the future, however, driven by uncertainty around the success of the IMF negotiations and the outcome of the upcoming presidential elections.