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Lebanese private sector’s contraction accelerates in August

PMI dropped to 47.8 points, settling below neutral 50-point level for 26th month in a row

The Lebanese private sector’s economy accelerated in August with the fall of the headline seasonally adjusted BLOM Lebanon Purchasing Manager Index (PMI).

The index dropped to 47.8 points, after reaching 49.3 points in July, to settle below the neutral 50-point level that separates growth from contraction for the 26th month in a row, reports London-based Al-Hayat.

This was its lowest reading since September 2014, says BLOM Bank’s report. According to the report, the drop in the headline is attributed to the deterioration of economic conditions generally, as well as the declining production levels in companies. In addition, incoming new orders and new businesses from abroad also decreased at a quicker pace.

The report also links this to the absence of political stability in a number of cases, adding that the weakness of the domestic market worsened because of the decline in new businesses from abroad for the first time in four months.