The PMI climbed to 49.2, up from 48.8 in September, signaling a near-steadying of business conditions.
Egypt’s non-oil private sector saw its mildest slowdown in three months during October, as both output and new orders contracted at a slower pace, according to the S&P Global Egypt Purchasing Managers’ Index (PMI) survey released on Tuesday.
The PMI climbed to 49.2, up from 48.8 in September, signaling a near-steadying of business conditions.
Although still below the neutral 50.0 mark that separates expansion from contraction, the reading remained above the long-term series average of 48.2, pointing to a softer decline overall.
Manufacturing showed modest improvement with a slight rise in new orders, while services, construction, and wholesale and retail sectors continued to experience weaker demand.
Notably, the overall drop in new business was the smallest in five months.
Employment levels edged higher for the third time in four months amid steadier demand, though hiring growth remained subdued.
Meanwhile, input cost inflation accelerated to a five-month high, driven by the steepest rise in wage costs since October 2020.
Despite this, firms absorbed much of the pressure, resulting in a moderate easing in selling price inflation.
“Momentum in domestic markets has improved slightly at the start of the fourth quarter,” said David Owen, Senior Economist at S&P Global Market Intelligence. “However, rising cost pressures could slow things down if companies struggle to absorb these costs in the months ahead.”
Business confidence strengthened as firms expressed renewed optimism about client demand and Egypt’s domestic economic outlook, though expectations still lagged behind historical averages.
