Egypt’s non-oil private sector activity declined at a slower pace in October, marking the softest contraction in three months, according to data released by S&P Global on Thursday. The country’s Purchasing Managers’ Index (PMI) rose to 48.6 from 47.9 in September, though it remained below the 50.0 threshold separating growth from contraction, as reported by Reuters.
The report attributed the easing downturn to slower declines in output and new orders, alongside a modest recovery in business sentiment. S&P Global noted that while inflationary pressures persisted, the rate of input cost increases had moderated, offering some relief to firms facing rising expenses.
“Firms continued to struggle with weak domestic demand and elevated prices,” the report said. “However, the slowdown in the pace of contraction suggests some stabilization in operating conditions.”
The Central Agency for Public Mobilization and Statistics (CAPMAS) reported earlier this month that Egypt’s inflation rate eased slightly to 35.2% in September, supported by lower food and energy prices. Economists told Bloomberg that the improvement in the PMI could signal that government reforms and recent foreign exchange inflows are beginning to support private-sector resilience.
