PMI rises to six-month high to signal improving business conditions

The BLOM Lebanon PMI for August 2025 rose slightly above the 50.0 no-change threshold to record a 50.3 compared to July’s 48.9, ending five consecutive months of contraction, and signaling a marginal expansion in private sector business activity. This rebound signals a tentative improvement in investor sentiment and operational conditions, supported by relative exchange rate stability, easing inflation, and a seasonal boost from tourism inflows, but it comes against a backdrop of heightened political and security tensions. Most notable was the Lebanese Cabinet’s long-delayed decision – under heavy U.S. and European pressure – to adopt a framework for Hezbollah’s gradual disarmament, a move that deepened domestic divisions and triggered strong pushback from the group. Hezbollah’s rejection and subsequent mobilization of supporters underscored the fragility of the state’s authority, thus Israeli airstrikes targeting Hezbollah infrastructure in the South and Beqaa continued to disrupt trade and logistics, and the ongoing violence in Syria persisted to weigh on regional stability and business confidence. Ultimately, the August PMI highlights how fleeting gains remain overshadowed by entrenched instability and unresolved reforms, leaving Lebanon’s private sector on uncertain ground.

For the full report click on the below link:

Macro Report – August 2025

 

LB_PMI_ENG_2509 ; LB_PMI_ENG_2509_PR ; LB_PMI_ARA_2509 ; LB_PMI_ARA_2509_PR

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