Egypt Non-Oil Private Sector Activity Falls in September

The S&P Global Egypt PMI fell to 47.2 in September 2026 from 49.6 in August, signaling a renewed and accelerated deterioration in non-oil private sector conditions. Output and new orders both declined sharply, with weaker demand, geopolitical disruptions and elevated inflationary pressures weighing on business activity. Employment, however, increased for a second consecutive month, marking the first back-to-back rise in payrolls in more than a year. Meanwhile, purchasing activity contracted for a sixth straight month, while inventories fell for a third consecutive month as firms reduced input purchases. Cost pressures remained elevated, driven by higher oil, metals, electricity and transportation costs, prompting companies to raise selling prices strongly despite a slight easing in output price inflation. Business confidence remained positive but weakened from August’s more than four-year high amid concerns over weaker demand and ongoing geopolitical disruptions.

The S&P Global Egypt PMI rose to 49.6 in August 2026 from 46.8 in July, signaling the softest deterioration in operating conditions since January as the non-oil sector moved closer to stabilisation. Output and new orders declined at slower rates, with the fall in new business the least marked since February amid signs of improving market activity. Employment also increased for the first time since October 2025, with job creation reaching its second-fastest rate on record. However, purchasing activity contracted at the sharpest pace in nearly three years, as material shortages, cash-flow constraints, delayed payments, and Strait of Hormuz disruptions weighed on buying activity. Meanwhile, price pressures quickened for the first time since May, with both input costs and output charges rising at faster rates. Despite the challenges, business confidence climbed to its highest level since June 2022, supported by expectations of new projects, tourism expansion and branch openings.

The S&P Global Egypt PMI rose to 46.8 in July 2026 from 46.0 in June, signaling a softer but still sharp contraction in the non-oil private sector. New orders fell for a seventh straight month amid weak demand, high prices, shipping delays, and fewer new projects, leading to a softer decline in output. Employment continued to fall, while backlogs of work rose at the second-fastest rate in nearly three years. Purchasing activity contracted at the sharpest pace since September 2023, prompting the first decline in input inventories in five months. In contrast, supply chain conditions improved for the first time since March as delivery times shortened amid easing Middle East disruptions. Input cost inflation also eased to a six-month low, while output price inflation slowed to a four-month low. Looking ahead, business confidence hit its highest level since June 2022, although optimism remained tied to regional geopolitical developments.