BLOMInvest launches business index

Purchasing Managers Index will supply valuable information for decision makers

BLOMInvest launched the BLOM Purchasing Managers Index (PMI). The index, issued by Markit, a global financial information services company, and sponsored by BLOMInvest, is a monthly survey of business operation conditions in the country, covering the activities of more than 400 private companies and institutions across different economic sectors, according to each sector’s contribution to the Gross Domestic Product (GDP).

“The index will provide decision makers with valuable information since it can predict growth prospects and economic activity performance,” said Saad Azhari, Chairman of BLOMInvest.

The PMI is an aggregate index, calculated on the basis of five secondary components, including new orders (30 percent), production (25 percent), employment (20 percent), suppliers’ delivery dates (15 percent), and sales stocks (ten percent).

“Statistics and indexes are essential to follow developments and trends,” said Fadi Osseiran, General Manager of BLOMInvest. “They also help take objective and right decisions,” he said.

PMI results above 50 points indicate business improvement. The PMI survey had been tested since May 2013. It stood at 49.1 points in October, representing a slowdown of economic activity for the fourth consecutive month. The index had the lowest score in August with 44.9 points.

BLOMInvest already manages several local indexes, mainly the BLOM Stock Index, the BLOM BOND Index, and the BLOM Preferred Share Index.