LEBANON - Business activity in Lebanon expanded for the fourth consecutive month in September, supported by stronger domestic demand and an improvement in output and new orders, according to the latest BLOM Lebanon Purchasing Managers’ Index (PMI).
The PMI rose to 50.5 points in September, up from 50.1 in August, marking a fourth consecutive month above the 50-point threshold. A reading above 50 indicates expanding private-sector business activity, while a reading below 50 signals contraction.
Domestic Demand Supports Growth
Stronger domestic demand drove the improvement. The output component of the PMI increased from 49.9 points in August to 50.7 in September, indicating a return to growth.
The new orders component also moved into expansion territory, rising from 49.6 to 50.8 points. A
“Domestic demand” remained a key source of support for businesses during the month, although external demand continued to weaken.
New export orders fell from 45.9 points in August to 45.7 points in September, remaining well below the 50-point threshold. The decline reflects continued weakness in external demand amid ongoing regional instability.
Rising Costs Put Pressure on Businesses
Despite the improvement in activity, businesses remained cautious about the outlook. Employment declined slightly during September, while purchasing activity also fell.
At the same time, input cost inflation reached its highest level in three and a half years, according to the survey. Businesses faced higher costs for imports, fuel, food, construction, maritime transport and insurance.
Business Outlook Remains Cautious
Businesses’ expectations for activity over the next 12 months improved in September, with the PMI component measuring future expectations rising from 39 points in August to 40.9 points.
The indicator, however, remained below the 50-point threshold, showing that companies continued to expect challenging conditions ahead.
The September PMI therefore points to a private sector showing signs of resilience, but still operating under significant cost pressures and uncertainty.
