Egypt Non-Oil Private Sector Hits Five Year High in November

Egypt’s non-oil private sector recorded its sharpest improvement in business conditions in more than five years in November. The S&P Global Egypt Purchasing Managers’ Index rose to 51.1 from 49.2 in October, marking the first expansion since February and the highest since October 2020. A reading above 50 signals an overall improvement in operating conditions. S&P Global noted that historically a 51.1 reading corresponds to annual GDP growth of more than 5%. Surveyed firms reported a broad-based uptick in activity, with output rising across manufacturing, construction, and services, while wholesale and retail trade posted a slight decline. New business increased, ending an eight-month downturn, as respondents linked higher sales to improving demand and softer price pressures. New orders rose at the quickest pace in five years, with gains seen in manufacturing, construction, and services. Employment levels were unchanged, continuing recent months’ subdued staffing trend. With demand improving and headcounts flat, outstanding work increased for a third consecutive month. Overall input cost inflation eased to its lowest level in eight months. Companies often attributed the moderation to a stronger Egyptian pound that reduced import costs, while wage costs continued to rise. Selling prices increased only marginally, at the slowest pace in seven months. Purchasing of new inputs declined at a faster rate, though input inventories stabilised after a marked contraction in October. Delivery times were included in the PMI calculation under the standard methodology but were not identified as a key pressure point in November. Business expectations for future activity remained positive, albeit slightly lower than in October.