Cairo - Mubasher Egypt’s headline seasonally adjusted Purchasing Managers’ Index (PMI) declined to 49.2 in August 2025 from 49.5 in July, according to the latest S&P Global PMI data.
Remaining below the 50.0 threshold but above the long-run average of 48.2, the reading highlighted a sixth straight month of softer non-oil private sector conditions.
Non-oil businesses witnessed a fall in output and new orders at a quicker pace than in July, though the overall downturn was softer than the historical average.
Companies attributed the decline to subdued client demand amid weak economic conditions and persistent inflation concerns.
They continued to cut purchasing activity for the sixth month in a row, leading to lower input stocks. However, supplier delivery times improved for the first time since March.
Meanwhile, the survey showed a modest rise in employment for the second month, driven by efforts to boost capacity and clear backlogs, though overall growth remained marginal.
David Owen, Senior Economist at S&P Global Market Intelligence, commented: “Employment rose for a second month, but gains remained mild, while firms stayed reluctant to increase purchases given weak confidence in the outlook.”
Selling prices charged by non-oil companies rose at the fastest rate since May, narrowing the gap with input costs and providing some relief to margins.
Owen added: “Persistent inflation has weighed on sales and output expectations in recent months. However, with business cost pressures now at one of their lowest levels since early 2021, there may be scope for recovery if firms can pass these improvements through to customers in the form of lower prices.”
