LEBANON - Lebanon’s private sector increased in June 2026 for the first time in four months, supported by improving domestic demand, renewed political stability, and the reopening of key export markets, according to the latest BLOM Lebanon Purchasing Managers’ Index (PMI).
The PMI, compiled by Blominvest Bank and based on a monthly survey of 400 private-sector companies, rose to 50.3 points in June from 49.7 in May. A reading above 50 signals an expansion in business activity, while a figure below that threshold indicates contraction.
The June result represented the index’s highest reading in four months. The improvement was driven by increases in both new orders and business output, which also reached four-month highs.
Analysts attributed the recovery to a combination of political and economic developments. These included a protocol agreement between Iran and the United States aimed at ending regional hostilities.
Saudi Arabia’s decision to resume imports of Lebanese products after a ban imposed in 2021 also provided a significant boost to business sentiment.
“The BLOM Lebanon PMI rose to 50.3 in June, returning to expansion territory for the first time in four months,” said Mira Said, Research Associate I at Blominvest Bank. “Growth was driven by new orders and output, with domestic demand playing the leading role.”
According to the survey, domestic orders increased as some internally displaced residents returned to their homes and resumed consumption and repair activities. Demand for locally produced goods also strengthened amid new taxes on imported products that generate waste after use, making domestic alternatives more competitive.
While export orders remained in contraction, the decline eased sharply and reached its weakest level in four months.
The survey also showed signs of stabilization in the labor market. Employment levels declined only marginally, while outstanding business volumes increased for a second consecutive month.
Despite continued reports of higher import, transportation, and fuel costs, overall input price inflation slowed to its lowest level in five months. Companies nevertheless raised selling prices at a faster pace in an effort to protect profit margins.
The latest PMI data suggest Lebanon’s private sector entered the second half of 2026 on a firmer footing after months of economic uncertainty.
