The PMI (Purchasing Managers Index), published by BlomInvest, reached 49.4 points in March compared to 49.1 the previous month. This slight improvement demonstrates a certain flexibility in the local market.
Commenting on this figure, BLOM Invest analyst Stephanie Aoun indicated that the PMI recorded a slight increase, primarily due to the improvement in production and indicators of new domestic orders.
However, she lamented that new export orders have decreased worryingly due to disruptions in the Red Sea supply lines and challenges related to supply chains, leading to a decline in the export order index to its lowest level since December 2022.
Furthermore, Aoun added that the economy is facing increasing inflationary pressures, with Lebanese businesses adjusting their pricing strategies in response to rising transportation, insurance and raw material costs. Consequently, these headwinds underscore the fragile nature of the Lebanese economy and the need for targeted policy interventions and reforms to address structural weaknesses and promote sustainable growth.
According to the survey, the commercial activity of Lebanese private sector businesses declined in March. Anecdotal evidence indicated that weak demand led to a decrease in production levels. Nevertheless, the rate of decline in commercial activity was moderate and lower than that of February.
Total new orders decreased for the eighth consecutive month at the end of the first quarter of 2024. The decrease in new orders is attributed to the low purchasing power of local consumers and regional issues.
The PMI is an indicator based on the monthly results of 400 companies, measuring private commercial activity. It indicates a decrease in activity if its value is below 50 points. If it is lower than the previous month, it means that the decline continued.
