CAIRO | Egypt’s non‑oil private sector recorded its shallowest contraction in three months in October, as a business survey showed some improvement in new orders and output despite persistent headwinds.
The Egypt Purchasing Managers’ Index (PMI) rose to 49.2 from 48.8 in September, staying below the 50.0 threshold that separates expansion from contraction but above its long‑run average of 48.2.
Manufacturing led the modest improvement, reporting a slight increase in new orders, while services, wholesale & retail and construction sectors continued to face weak demand. The drop in new business was the mildest in five months. Employment also rose for the third time in four months, supported by steadier demand.
However, cost pressures intensified: input costs increased at the fastest pace since May, driven by the sharpest wage growth since October 2020. Many firms absorbed the higher costs, which helped ease the rate of output‑price inflation.
“Momentum in domestic markets has improved slightly at the start of the fourth quarter,” said , Senior Economist at S&P Global Market Intelligence. “However, rising cost pressures could slow things down if companies struggle to absorb them in the months ahead.”
Despite the cautious optimism, business sentiment remains subdued, reflecting uncertainty about future demand and ongoing structural pressures in the broader economy.