Deterioration in Private Sector Conditions Eases, But Sentiment Drops Sharply

The BLOM Lebanon PMI for the month of June 2025 recorded 49.2, witnessing a slight increase from 48.9 in May 2025. This increase reveals the decrease in private sector business activity for the fourth consecutive month but at a softer pace. The continued political uncertainty along with the escalation of the geopolitical tension in the Middle East were the main factors behind the contraction in business activity in June 2025. On the political front, the discussions regarding disarmament of non-state armed groups continues. As the discussion period extends, Lebanon is delaying the solution of the economic and financial crisis as well as reconstruction of the destroyed residences and small and medium enterprises. Also revealed is that aid for reconstruction and for economic recovery is linked to the full implementation of UN Resolution 1701. On the security front, the direct war between Iran and Israel for a couple of weeks affected Rafik Hariri airport traffic in addition to the shipment of goods in the region. This increased regional tensions and caused an increase in shipping costs and thus in a decrease in new orders and new export orders.

 

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Deterioration in Private Sector Conditions Eases, But Sentiment Drops Sharply

LB_PMI_ARA_2507 LB_PMI_ARA_2507_PR LB_PMI_ENG_2507 LB_PMI_ENG_2507_PR

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