The Lebanese Central Bank released its “Business Survey” report pertaining to the second quarter of 2023 in which it assesses a set of macroeconomic indicators based on the opinions of corporate managers through a poll addressing the performance of their respective businesses. The assessment of each macroeconomic indicator relies on a balance of opinion, which consists of the difference between the proportion of managers estimating a certain improvement and those perceiving a contraction in the related variable. In details, the report unveiled that the balance of opinion with regards to “industrial production” improved quarter-on-quarter to 0% in the second quarter of 2023, up from -25% a quarter earlier and from -36% in the second quarter of the preceding year. The report also showed some amelioration in the balance of opinion concerning “total demand” in the industrial sector to -2% in Q2-2023, from -27% a quarter earlier, with the gap in “foreign demand” narrowing to -6%, from -19% in the first quarter of 2023. The “volume of investments” balance showed a slight improvement on a quarterly basis to -16%, compared to -19% in Q1-2023.

On the commerce front, the balance of opinion for “volume of sales” improved significantly to -2% in Q2-2023, in comparison with -22% in the previous quarter. With respect to construction & public works, the negative balance of opinion of managers for “general activity”, “construction” and “public work” metrics narrowed to 38%, 38% and 48% on a respective basis, from negative readings of 54%, 51% and 49% in the first quarter of 2023.

Geographically, barring the South region (where the balance of opinion was negative across all economic sectors), the balances of opinion of interviewed managers surrounding industrial, commercial, and construction & public works activities portrayed mixed results across all regions as outlined below: