Egypt Today: Egypt’s non-oil private sector experienced its mildest slowdown in three months during October, according to the S&P Global Egypt Purchasing Managers’ Index (PMI) report released on Tuesday.
The PMI rose to 49.2, up from 48.8 in September, signaling that business conditions are nearing stability. While the reading remains below the neutral 50.0 mark that separates expansion from contraction, it stayed above the long-term series average of 48.2—indicating a softer overall decline.
The manufacturing sector showed slight improvement with a modest increase in new orders, whereas services, construction, and wholesale and retail sectors continued to face weaker demand. The overall drop in new business was the smallest recorded in five months.
Employment levels edged up for the third time in four months, supported by steadier demand, although hiring growth remained modest.
At the same time, input cost inflation accelerated to a five-month high, driven mainly by the sharpest rise in wages since October 2020. Despite higher costs, companies absorbed much of the pressure, leading to only a moderate increase in selling prices.
“Momentum in domestic markets has improved slightly at the start of the fourth quarter,” said David Owen, Senior Economist at S&P Global Market Intelligence. “However, rising cost pressures could slow things down if companies struggle to absorb these costs in the coming months.”
Business confidence strengthened as firms expressed renewed optimism about client demand and Egypt’s broader economic outlook, though expectations remained slightly below historical averages.
https://www.egypttoday.com/Article/3/143275/Private-sector-slowdown-eases-as-Egypt%E2%80%99s-PMI-rises-to-49
