Egypt Non-Oil Private Sector Contraction Persists

2025-09-03 04:26 By Joshua Ferrer 1 min. read

The S&P Global Egypt PMI slipped to 49.2 in August 2025 from 49.5 in July, signaling a deeper contraction in non-oil private sector activity and marking the sixth month of decline.

The downturn was driven by quicker falls in output and new orders, as weak economic conditions and persistent inflation continued to weigh on demand.

With sales softening, firms cut back on purchasing and reduced inventories, though this easing of pressure on suppliers led to shorter delivery times for the first time since March.

At the same time, companies raised staffing for a second month, building on July’s rebound, as they looked to handle outstanding workloads.

Cost pressures also eased, with input price inflation slowing to a five-month low, the weakest seen in more than four years.

However, businesses sought to protect margins by lifting output charges at the fastest rate since May.

Looking ahead, optimism remained fragile, with confidence broadly unchanged from July and still near record lows.



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