BLOM Lebanon PMI March 2024:Lebanon PMI recovers in March, but supply issues and export performance weigh on economy

BLOM Lebanon PMI March 2024:Lebanon PMI recovers in March, but supply issues and export performance weigh on economy

Commenting on BLOM Lebanon PMI for February 2024, Mrs. Stephanie Aoun, research analyst of BLOMINVEST Bank, said:
"The recent uptick in Lebanon's PMI for March signifies a slight rebound from the previous month's decline, as the index rose to 49.4 from 49.1 in February 2024. This marginal improvement was primarily driven by improved trends in domestic output and new orders, demonstrating some resilience in the local market. However, amidst this positive trend, there exists a concerning decline in new export orders, attributed to disruptions in the Red Sea region and supply chain challenges, thus inducing the most significant slowdown in exports since December 2022. Furthermore, the economy faces mounting inflationary pressures, as escalated costs associated with shipping, insurance, and raw materials compel firms to adjust their pricing strategies increasingly upwards. Therefore, these headwinds underscore the fragile nature of Lebanon's economy and the necessity for targeted policy interventions and reforms to address structural vulnerabilities and foster sustainable growth."

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