Lebanon’s private sector continued its rebound in September, posting its strongest performance since records began more than a decade ago.  The Purchasing Managers’ Index, or PMI, published monthly by Blominvest, rose to 51.5 points in September from 50.3 in August. That marked its second straight month of expansion and its highest level since the survey was launched in 2013.The gains came despite persistent caution among businesses, which cited political and security uncertainty as major risks. Lebanon is only beginning to recover from the 13-month conflict that ended with a fragile cease-fire in November 2024.  The contrast remains stark: while Lebanon’s annual inflation rate is among the highest in the region — 14.17 percent in August, according to the Central Administration of Statistics — the PMI has reached a historic high. Blominvest’s August report already noted that the economy “had fared rather well” during the summer, driven mainly by domestic demand and inventory restocking, even as exports stayed weak.  In September, the trend strengthened: business activity and new orders hit record levels, companies boosted purchases and inventories, order books filled at their fastest pace in months, and employment stabilized after half a year of slight declines.  But the rebound came under pressure from rising costs. Input prices jumped in September at the fastest pace in two and a half years, pushed by more expensive imports, transportation and customs fees. Companies responded by raising selling prices at the sharpest rate since March 2023. Analysts warn that sustained inflation could squeeze household purchasing power and slow consumption, threatening the fragile recovery.  Lebanon’s result stands out compared with several larger economies still in contraction. Brazil (48.8), Russia (49.1) and Canada (48.4) all posted PMI readings below 50.  Lebanon also topped the eurozone average (51) and nearly matched China (51.9) and Japan (52). The United Kingdom (53.5), the United States (54.6) and India (63.2, the strongest worldwide) showed more robust growth, but Lebanon remains in the category of expanding economies.  The PMI is based on a monthly survey of about 400 companies in manufacturing, services, construction and retail. A reading below 50 signals contraction, while a reading above 50 signals expansion. Month-to-month changes indicate whether sentiment is improving or weakening. The index is compiled in about 40 countries. (ICE BEIRUT)

Fonte notizia: L'Orient Today