Lebanon’s business conditions hit four-month low

 

 

The Blom Lebanon Purchasing Managers' Index reading dropped to 48.8 last month, from 50.1 in August, which was its highest since June 2013.

A reading above the neutral level of 50 indicates growth while one below it points to a contraction.

“As the summer season has come to an end, Lebanon is evidently witnessing a decrease in tourist arrivals and spending, in addition to the strike of banks,” said Stephanie Aoun, a research analyst at Blominvest Bank.

“Therefore, the business activity in Lebanon's private sector is continuously shrinking amid rising inflation, political instability and weakening of the Lebanese pound.”

New orders fell at a quicker pace, reflecting weaker sales performances both domestically and abroad, the survey showed. Output also declined at a stronger rate, although backlogs of work fell for the first time in three months as private businesses made inroads in fulfilling outstanding orders.

The Lebanese pound's unfavourable exchange rate against the US dollar, which has resulted in the local currency losing more than 90 per cent of its value, continues to exacerbate inflationary pressures.