Lebanon Private Sector Contraction Eases In January

(RTTNews) - Lebanese private sector contraction slowed at the beginning of the year, as both output and new orders fell only marginally, survey figures from Markit Economics and Blominvest Bank showed Wednesday.

The BLOM Purchasing Managers' Index, or PMI, rose to 49.5 in January from 49.3 in the previous month. But any reading below 50 indicates contraction in the sector.

This was its joint-highest reading in the past 19 months and indicated only a marginal deterioration in business conditions across the private sector.

Both output and new orders dropped only at a slower pace. Moreover, output declined at the weakest pace since December 2013.

Total new business received in January marked its least in the current 20-month sequence of contraction. That was despite new business from abroad having returned to contraction, dropping for the first time in three months.

Employment level stabilized during January, after falling slightly in December and for the first time in four months.

On the price front, input prices rose marginally during the month. This helped companies to reduce their selling prices for the seventh consecutive month in January, albeit nominally.