PMI Rebounds in February as New Business Growth Re-accelerates Sharply

The BLOM Lebanon PMI rose to 51.2 in February 2026, from 50.1 in January, its seventh straight month in expansion. Growth was driven by rising new orders, and stronger output, supported partially by an expected rise in public sector wages in the short-term and improvement in the country’s economic conditions. However, this came with inflationary pressures. To fund the increase in puclic sector salaries, the cabinet announced hikes in petrol and value-added taxes (VAT) in February. Petrol taxes, effective immediately, fuelled inflationary pressures. It seems that the proposed VAT increases, still awaiting parliament’s approval, pushed customers to buy in advance before prices rose, driving new orders higher and ouput to meet demand. Notably, despite rising inflation, staff costs remained almost stagnant, so private sector wages slipped relative to inflation. It is worth highlighting that data was gathered before the escalation of the war in Lebanon and the wider region.

For the full Macro report, click HERE.

For the PR reports, click HERE for the English version and HERE for the Arabic version.

For the full PMI reports, click HERE for the English version and HERE for the Arabic version.