Lebanon’s PMI improves to 49.0 in December 2013

By bne IntelliNews January 7, 2014

Lebanon’s purchasing managers index (PMI) strengthened to 49.0 in December 2013 from 45.1 the month before, signalling a substantial easing in the rate of contraction of the Lebanese economy, a survey compiled by Markit Economics for Blominvest Bank showed on January 7. Lebanon’s PMI, which remains below the 50.0 benchmark, now stands at a level indicative of only a modest pace of decline, according to Markit. The rates of contraction in output and new orders slowed sharply in December while employment fell following recent economic contraction. Markit underscored that the December PMI signalled a mild retreat in overall economic output, sharply contrasting with the severe reduction reported in November.

Lebanese companies indicated that although political and security concerns continue to weigh on the economy, they had weighed less heavily on business activity than during November. Weak demand, however, continued to undermine output, Markit noted. The level of incoming new orders reportedly fell at a solid pace in December, albeit to a much lesser extent than one month earlier. The strained political and economic situation in Northern Lebanon amid sporadic violent clashes continued to be felt on the domestic market, the pollster said. Lebanon’s outlook, however, was lifted by rising new export orders, which stabilised following a seven-month period of continuous decline. Lebanese companies reported a reduction in employment for the first time in the eight months of survey data collection during December. But the rate of job loss was only marginal, as some firms continued to raise capacity in order to help launch new product lines, according to Markit.

For the first time in the short PMI survey history, Lebanese companies increased their average selling prices in December. The rate of output charge inflation was marginal, however, reflecting a combination of rising input costs and the launch of new improved product lines.

Average purchase costs increased on the back of a stronger euro on currency markets during December. In contrast, average wages and salaries fell slightly for the first time in the series history, Markit said.

Related Articles

Iran, Syria sign raft of memoranda and deals

Following the purge of foreign-backed rebels in the devastated Syrian city of Aleppo by Iranian, Lebanese and Russian forces, Damascus’s prime minister Imad Khamis was in Tehran to sign five ... more

Egypt could return to emergency rule amidst deadly bomb explosions

A spate of explosions in Egypt over the long weekend marking the birthday of Prophet Mohamed culminated in the detonation of a bomb at a church attached to the Coptic Christian Cathedral that ... more

Egypt’s inflation spikes post November currency floatation, rate hike expected

Egypt’s annual inflation rate spiked in November to hit its highest levels since July 2008, reflecting the effects of the general rise in price levels of goods since the Egyptian pound’s ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss