Egypt’s non-oil private sector recorded a third consecutive month of output growth in January, even as demand conditions weakened, a business survey showed. Data from S&P Global’s Purchasing Managers’ Index (PMI) indicated that production continued to expand, supported in part by foreign demand, Reuters said.
The headline PMI slipped to 49.8 in January from 50.2 in December, falling just below the 50 mark that separates growth from contraction. While the reading suggests overall activity edged lower, the survey showed output remained resilient despite softer new orders, figures from S&P Global showed.
New business growth slowed after two months of expansion, with domestic demand easing and backlogs of work declining at the fastest pace in nearly three years. Firms responded by reducing staffing levels, while easing cost pressures allowed some companies to cut selling prices for the first time since mid-2020, based on details cited by Investing.com.
Business confidence stayed cautiously positive, though expectations for future activity remained subdued. Economists said the slowdown in demand highlights ongoing pressure on household spending and underscores the importance of sustained economic reforms to support private sector growth in the months ahead.
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