Key insights
- Lebanon's private sector contracted in April, driven by a sharp drop in export orders due to regional conflict. The BLOM Lebanon PMI registered 48.2, with new export business plummeting to a six-year low of 30.0. Inflationary pressures intensified, with purchase prices rising at a 37-month high. Business confidence deteriorated amid concerns about the ongoing war. While the direct impact on US equities is minimal, it highlights the broader global economic risks associated with geopolitical instability and supply chain disruptions.
Investing.com -- Lebanon’s private sector continued to deteriorate in April, with export orders falling at the sharpest rate in six years as the war in the Middle East deterred international customers from placing new orders, according to the BLOM Lebanon PMI released Wednesday.
The headline PMI registered 48.2 in April, up from March’s 17-month low of 47.4 but still below the 50.0 threshold that separates growth from contraction. The index has remained in contraction territory for two consecutive months.
New export business plummeted to 30.0, marking the steepest decline in six years. Private sector firms reported that overseas clients reduced orders due to security risks associated with the regional conflict. Total new work also fell as both consumer and corporate spending weakened amid poor market conditions.
Private sector output decreased in April, though the rate of decline was softer than in March. Some domestic orders helped offset the export collapse, aided by an incomplete ceasefire that gave the economy breathing room during the month.
Employment fell marginally as companies cited lack of work and rising costs. Firms reduced purchasing volumes to maintain liquidity and avoid overstocking, leading stocks of purchases to fall at the fastest rate in 18 months.
Inflationary pressures intensified to their highest level since early 2023. Purchase prices rose at a 37-month high, driven by increased shipping and import costs. Companies passed these costs to customers, with selling prices climbing at the most marked rate since March 2023.
Business confidence deteriorated for a second month, with the Future Output Index falling to its lowest point since November 2024. Surveyed companies expressed concerns about the ongoing war and uncertainty surrounding it.
The data was collected from April 9-24 from approximately 400 private sector companies across manufacturing, services, construction and retail.
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