Egypt’s non-oil private sector recorded its fastest expansion in five years in November, marking a significant milestone in the country’s economic recovery. The headline Purchasing Managers Index rose to 51.1 from 49.2 in October, moving above the 50 point threshold that signals growth in business activity, according to data released by S and P Global and reported by Reuters.
The improvement was driven by stronger output and a rebound in new business orders, which ended an eight month decline. Activity rose across manufacturing, construction and services, reflecting what analysts described as a broad uplift in domestic demand. Wholesale and retail activity remained the only segment still contracting, as highlighted by coverage from Business Recorder.
Cost pressures also eased, providing relief to firms that have struggled under higher import expenses in recent years. Input cost inflation fell to its lowest level in eight months, while output price inflation moderated. A firmer Egyptian pound helped reduce import prices, which S and P Global noted was a key factor supporting business margins, according to Business Recorder’s assessment.
Economists say the stronger PMI reading suggests Egypt is on track for a more robust finish to the year. Commentary in the S and P Global report cited by Business Recorder indicated that the momentum could lift fourth quarter GDP growth above earlier projections, potentially pushing overall expansion above five percent if the trend continues.
