Egypt’s Non-Oil Private Sector Sees Slowest Contraction in Three Months, PMI Shows

Egypt’s non-oil private sector contracted at its slowest pace in three months in October, as declines in new orders and output eased, according to a business survey released on Tuesday.

The S&P Global Egypt Purchasing Managers’ Index (PMI) rose to 49.2 in October from 48.8 in September, remaining below the 50.0 threshold that separates growth from contraction. However, it stayed above the series average of 48.2, signaling only a modest deterioration in business conditions.

The manufacturing sector led the improvement, supported by a slight uptick in new orders, while activity in services, wholesale and retail trade, and construction remained subdued. Overall, the fall in new business was the smallest in five months.

With demand stabilizing, employment increased for the third time in four months, though job creation was marginal.

Price pressures intensified, driven by the sharpest rise in wage costs since October 2020 and the fastest increase in input costs in five months. Despite this, most firms absorbed the higher expenses, resulting in only a slight easing of output price inflation.

“Momentum in domestic markets improved slightly at the start of the fourth quarter,” said David Owen, senior economist at S&P Global Market Intelligence. “However, if firms struggle to absorb these cost increases in the coming months, the growing price pressures could slow the recovery.”

Business sentiment improved, with companies expressing optimism about future activity, citing stronger customer demand and better domestic economic conditions — though confidence remained below the long-term trend.