BLOM PMI at 47.1 in January, its Slowest Recorded Contraction in Nine Months

BLOM PMI revealed its highest reading in nine months in January at 47.1, up from 46.1 in December, indicating a slower fall in overall business activity. The improvement in the private sector was supported by the eased downturns in new orders new export orders received by companies. In addition to that, average output prices rose for the first time since March 2015, aided by the higher average prices paid for purchases. As a matter of fact, Marwan Mikhael, Head of Research at BLOMINVEST Bank, explained that “higher costs and output prices characterized the first month of 2018 as the amended tax law went into effect in January.” Mr. Mikhael added “Although tourism did improve during December, its impact on the economy was limited as output and new orders for companies continued their decline in January but at a slower rate. As it appears from the survey, companies remained pessimistic regarding their activity in the year ahead.”

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