The BLOM Lebanon PMI dropped to 47.6 in March 2025 from 50.5 in February, indicating a contraction in the private sector. This follows two months of expansion, indicating a renewed deterioration in the private sector’s health. Several factors contributed to this weakening. Firstly, geopolitical tensions rose sharply. Lebanon faced clashes along its border with Syria, and the conflict between Lebanon and Israel intensified. Domestically, optimism in local politics faded as new government appointments seemed focused on dividing power rather than broader reform. Additionally, Israel’s attacks on Gaza reached their highest intensity since the January ceasefire, and the Israeli-US-Houthi conflict escalated. Amid these local and regional challenges, output and new orders, both domestically and for export, decreased in March. This was reinforced by reduced spending on non-essential goods, higher shipping costs due to the war, and a decline in tourism.
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LB_PMI_ARA_2504 LB_PMI_ARA_2504_PR LB_PMI_ENG_2504 LB_PMI_ENG_2504_PR