Egypt Today: In November, business conditions in Egypt's non-oil private sector showed significant improvement, driven by lower inflationary pressures and slower increases in selling prices, according to the latest Purchasing Managers' Index (PMI) report from S&P Global.
The seasonally adjusted PMI rose to 51.1 points, up from 49.2 in October, marking the first expansion since February and the highest reading since October 2020. This level typically signals annual GDP growth exceeding 5 percent.
David Owen, Chief Economist at S&P Global Market Intelligence, commented: "November saw the non-oil private sector’s best improvement in over five years, suggesting a strong close to 2025."
Historically, this PMI reading points to potential GDP growth exceeding 5 percent in Q4.
Survey respondents indicated that improved market conditions helped boost demand, which in turn led to an increase in production for the first time since January, with the highest growth rate in five years.
The manufacturing, construction, and services sectors all reported growth compared to October, while wholesale and retail saw a decline.
The volume of new business ended an eight-month contraction, fueled by increased demand from both new and existing clients, partly due to easing price pressures. Employment levels remained stable, though unfinished work rose for the third consecutive month.
Inventories stabilized after a sharp drop in October, and input purchases decreased at a faster rate. Inflationary pressures on costs eased to their lowest level in eight months, with many businesses attributing the strength of the Egyptian pound against the dollar to reduced import costs, despite ongoing wage increases.
Selling prices increased slightly, marking the weakest rise in seven months, due to a slowdown in input cost growth. Businesses’ expectations for future activity were still positive in November, although less optimistic than in October, as demand trends became clearer.
https://www.egypttoday.com/Article/3/143841/Egypt-s-non-oil-private-sector-PMI-rises-to-51
