Egypt Non-Oil Private Sector Activity Falls to 5-Month Low

The S&P Global Egypt PMI fell to 48.9 in February 2026 from 49.8 in January. This marked the second consecutive month of contraction and the fastest pace since September 2025, with all five sub-components of the PMI pointing to deteriorating business conditions. New orders continued to decline, while output also dropped, ending a three-month period of expansion. Firms cut jobs for a third straight month and further scaled back purchasing activity. Supplier delivery times remained broadly unchanged, reflecting relatively mild input requirements. In addition, cost pressures intensified, with input prices rising at the fastest pace since May 2025, while selling prices increased only marginally. The survey indicated that rising global commodity prices pushed up import costs, particularly for key items such as oil and metals. Lastly, firms reported a relatively subdued outlook for future output.

The S&P Global Egypt PMI edged down to 49.8 in January 2026 from 50.2 in December, slipping just below the 50 threshold. The latest reading signals a marginal deterioration in non-oil business conditions, even as output rose for a third straight month. Production growth was supported partly by stronger foreign demand, but overall new orders declined slightly after recent gains, pointing to softer domestic sales. With output still rising and fewer new jobs coming in, firms focused on clearing backlogs, which fell at the fastest pace in nearly three years. Spare capacity led companies to trim staffing levels, marking the sharpest drop in employment since late 2023, while purchasing activity also eased. Cost pressures remained muted, with input prices rising slowly, allowing firms to cut selling prices for the first time since mid-2020. Despite the slowdown, sentiment stayed cautiously positive, with businesses expecting gradual improvements in demand over the year ahead.

The S&P Global Egypt PMI came in at 50.2 in December 2025, following 51.1 in November, marking a second consecutive month of expansion in non-oil business activity, a development observed only twice in the past five years. Output and new orders continued to rise, supporting ongoing growth, though both expanded more moderately than in November. Manufacturing and construction sectors recorded higher production, while wholesale, retail, and services saw declines. Employment fell for the first time in two months, reflecting cautious hiring, while input stocks declined for the third consecutive month amid ongoing supply-side constraints. On the purchasing side, firms increased their buying activity for the first time in ten months, responding to stronger demand. Input cost inflation remained subdued, rising slightly, and selling prices edged up only marginally. Overall, business sentiment was cautious, with firms taking a measured approach to growth amid mixed demand signals.