LEBANON - Lebanon’s private sector ended 2025 in slightly better condition than it began, despite higher inflation and continued caution among businesses, according to the latest Purchasing Managers’ Index (PMI).

According to L'Orient Today, the PMI reached 51.2 points in December 2025, down slightly from 51.3 in November but still higher than the 50.6 recorded in January.

A PMI above 50 means business activity is growing, while a reading below 50 signals a slowdown. The December figure shows that private-sector activity continued to grow, but only at a modest pace.

The PMI is based on monthly surveys of purchasing managers at around 400 companies across Lebanon and follows an internationally used method.

Although the index stayed above the 50-point mark for most of the year, growth slowed toward the end of 2025, showing that businesses remain careful.

Survey results pointed to rising inflation pressures in December. Many companies reported higher costs for materials and supplies, which pushed some of them to raise their prices.

Hiring remained limited, as many firms chose not to increase their workforce. Businesses cited uncertainty about future demand and the overall economic situation as key reasons for holding back on new jobs.

These results come nearly one year after early optimism followed the election of President Joseph Aoun and the appointment of Prime Minister Nawaf Salam.

Overall, the PMI shows that private-sector sentiment improved slightly over the course of 2025, but the recovery remains fragile.