S&P PMI: Lebanon’s private sector sees further decline in August

Lebanon’s private sector business conditions declined in August 2024. The headline index fell to 47.9 from 48.3 in July, signalling a modest deterioration in the overall economic conditions of the private sector.

The ongoing conflict between Hezbollah and Israel, and the war in Gaza, led to heightened security concerns, which adversely impacted sales, tourism, and overall business output.

Tourism demand decreased, causing a significant drop in new orders, while business confidence weakened amid growing concerns about Lebanon’s economic outlook. Despite the accelerated declines in output and new business, employment levels fell at a slower pace. Companies faced increased costs due to higher shipping expenses and insurance premiums, yet overall cost pressures remained subdued. Businesses attempted to pass these higher costs to consumers, but inflation rates remained relatively low.

Attribution: BLOM Lebanon PMI® 

Subediting: M. S. Salama