Egypt Non-Oil Private Sector PMI Drops to Near 2-Year Low

2026-04-05 05:32 By Farida Husna 1 min. read

The S&P Global Egypt PMI fell to 48.0 in March 2026 from 48.9 in February, marking the lowest reading since April 2024.

Non-oil private sector activity extended its recent decline, broadly in line with the survey’s long-run average of 48.2, as output and new orders dropped at the fastest pace in near two years amid the Middle East war, which dampened demand and fueled price pressures.

Purchasing levels edged up after two monthly reductions, while employment stabilized following job cuts late last year.

On prices, input cost inflation accelerated to the joint-sharpest in 18 months, driven by higher fuel and input prices linked to the war and a stronger US dollar.

Selling prices rose at the steepest rate since May 2025, though increases remained modest and near the long-run average.

Looking ahead, business confidence fell for the first time in the survey’s history, though pessimism was mild, with only a few firms citing war-related uncertainty as the reason for negative forecasts.



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Egypt Non-Oil Private Sector PMI Drops to Near 2-Year Low
The S&P Global Egypt PMI fell to 48.0 in March 2026 from 48.9 in February, marking the lowest reading since April 2024. Non-oil private sector activity extended its recent decline, broadly in line with the survey’s long-run average of 48.2, as output and new orders dropped at the fastest pace in near two years amid the Middle East war, which dampened demand and fueled price pressures. Purchasing levels edged up after two monthly reductions, while employment stabilized following job cuts late last year. On prices, input cost inflation accelerated to the joint-sharpest in 18 months, driven by higher fuel and input prices linked to the war and a stronger US dollar. Selling prices rose at the steepest rate since May 2025, though increases remained modest and near the long-run average. Looking ahead, business confidence fell for the first time in the survey’s history, though pessimism was mild, with only a few firms citing war-related uncertainty as the reason for negative forecasts.
2026-04-05
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.
2026-03-03
Egypt Non-Oil Private Sector Activity Softens in January
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.
2026-02-03