BLOM PMI August Signals Slowing Private Sector

The findings of the Purchasing Managers' Index (PMI) in Lebanon for August 2026 indicate that the Lebanese private sector has lost momentum in growth, as the index dropped to 50.1 from 50.7 in July, signaling a slowdown in economic activity. Uncertainty, security concerns, and rising prices have led to weak demand, with decreases in new business and export orders, which have been declining for nine consecutive months, although the rate of contraction was slower than the previous month. The decline in performance is attributed to weak tourism activity and declining exports due to regional disturbances, with forecasts suggesting that the economy could enter a recession that may worsen with the arrival of fall, as internal conflicts and difficulties in implementing reforms remain key challenges.

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