PMI Slips Back into Contraction Zone in October
The BLOM Lebanon PMI dropped from 50.5 in September to 49.8 in October 2026, marking the first month of contraction of private sector business activities since May 2026. October witnessed a reduction in domestic orders in addition to a larger contraction in new export orders; these reductions led to a decrease in production. Domestic orders were reduced due to the decrease in citizens’ purchasing power, economic and security uncertainty along with unfavorable economic conditions. As for new export orders, the instability in regional geo-politics increased the shrinkage in new orders from international client. These decreases in local and international orders led to a decline in business confidence over the next 12 months, in which survey respondents were wary of the negative economic consequences of the regional insecurity and uncertainty. Despite that, employment level remained stable in October. Additionally, private businesses chose for a more cautious stance regarding their inventory as stocks of purchases were cut for the first time since May 2026.
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