Egypt's Private Sector Stumbles As Demand Weakens Again

Egypt’s non-oil private sector lost more ground in September, with S&P Global’s latest Purchasing Managers’ Index (PMI) falling to 48.8 – its lowest in three months and well under the growth threshold.

A PMI below 50 signals that Egypt’s non-oil businesses are shrinking again, this time thanks to a tough demand environment. New orders slumped at the sharpest rate in five months, underlining just how hesitant customers are right now.

The good news? Input price inflation eased a bit as the Egyptian pound found its footing. But wage costs kept climbing, fueled by higher living expenses and minimum wage hikes, putting profits under pressure.

After a brief hiring boost, job gains hit pause, while business optimism dropped near record survey lows. On top of that, export sales sank for the tenth month in a row – the steepest drop in three years – showing international demand is still an uphill battle.

Slower input inflation would usually be a win – but without stronger demand, Egypt’s private sector isn’t bouncing back just yet.