BEIRUT, Sept. 5 (Xinhua) -- Lebanon's purchasing managers' index (PMI) fell from 50.3 in July to 48.7 in August, hitting a seven-month low, according to a report released by Beirut-based BLOMINVEST Bank on Tuesday.
As for the Blom PMI, a reading above 50 indicates expansion, while a reading below reflects contraction.
One month after reaching its highest level in a decade, the Blom index has dipped below the 50-point mark, symbolically indicating a return of pessimism on the market as a promising summer season ends.
The monthly report attributed the alarming drop to the substantial decline in output, new orders, and employment in the country.
It said the PMI readings in June and July standing above 50 were partially due to the country's heavy reliance on tourism activity and expatriate expenditure.
The situation took a concerning turn in August as further complications challenged the private sector, it added.
Lebanon has been without a president since former President Michel Aoun's term ended in October last year.
The absence of substantial economic reform caused by the political vacuum continued to cast a shadow over Lebanon's economic prospects, the report added.
Having been suffering from an unprecedented financial crisis, Lebanon urgently needs to elect a president and form a new cabinet to implement necessary reforms and set the country on the path of recovery. ■
