LEBANON - Lebanon’s private sector came under renewed pressure in March 2026, as rising regional tensions and the ongoing war in the Middle East slowed business activity, according to the latest BLOM Purchasing Managers’ Index (PMI).

The PMI dropped to 47.4 in March from 51.2 in February, its lowest level in 17 months. A reading below 50 signals contraction, showing that business conditions worsened after a period of slight recovery.

Ali Bolbol, Chief Economist at Bank of Beirut and the Arab Countries (BBAC), said the decline was expected given the regional situation, but noted its sharpness. He pointed out that the March level is close to October 2024, when a similar escalation in conflict affected the economy. Export orders were hit the hardest, falling to 41.8 due to instability in the Gulf.

Data from the survey showed that business activity declined after growing in six of the previous seven months. Companies reported fewer new orders, as some clients canceled or delayed projects because of the war. Demand from international clients also dropped significantly, leading to a sharp fall in export orders.