Lebanon’s private sector continues to deliver sluggish performance and stagnant growth, according to the BLOM Lebanon Purchasing Managers’ Index.
Despite rising by 0.1 in April, the PMI for private sector activity remained below the 50-point barrier.
Readings above 50 indicate an uptick in economic activity, while readings below 50 signal stagnation.
The PMI posted 49 in April, up from 48.9 in March, according to a report published by the Daily Star.
Ali Bolbol, economic advisor at BLOMINVEST Bank, says slower decreases in output and new orders contributed to the modest rate of contraction in April.
Bolbol stresses the need for what he calls a “positive political shock” in order to bail the economy out of stagnation and spur growth in private sector activity.
The index shows that starting new businesses and employment in the private sector continue to remain at slower paces.
Furthermore, the output index rose to 48.6 in April, compared with 47.6 in February, continuing a downward streak since June 2013, but at a slower pace.
According to the data, suppliers’ delivery times shortened on average in April for the fourth time in five months.