PMI Slips to Six-Month Low but Remains Just Inside Expansion Territory

The BLOM Lebanon PMI for January 2026 dropped to 50.1 from 51.2 in December 2025; however, it remained above the 50.0 threshold for the sixth month in-a-row, exhibiting the longest continuous expansion in private sector activity in more than 12 years. 2026 started with only a fractional expansion from December 2025 and the slowest across the current improvement. Output was unchanged in January due to limited new order inflows, along with a continued marginal deterioration in foreign clients’ orders. The slowdown in private sector business activity was due mostly to geopolitical risks, as the US military buildup in the region suggests the possibility of war with Iran. Politically, the debate regarding surrendering all weapon with unofficial military groups is still with no end results. The Lebanese President declared several times in the last month that the State is continuing weapon surrendering plans while Hezbollah is not willing to accept. In addition, the occurrence of parliamentary elections in May 2026 is still blurry due to the absence of agreement on amending the elections law especially as it relates to expats’ participation.

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PMI Slips to Six-Month Low but Remains Just Inside Expansion Territory

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