The report noted that the non-oil private sector contracted for the sixth consecutive month in August, as weak demand continued to weigh on business activity.
Egypt’s Purchasing Managers’ Index (PMI) fell to 49.2 points in August, down from 49.5 in July, remaining below the neutral threshold of 50, according to the latest report from S&P Global.
The report noted that the non-oil private sector contracted for the sixth consecutive month in August, as weak demand continued to weigh on business activity.
Companies reported a reduction in output due to subdued demand and persistent inflationary concerns, although the pace of decline was less severe than the historical average.
The report added that non-oil private firms remained cautious in their purchasing decisions, with input buying volumes declining for the sixth straight month, accompanied by a further drop in inventories.
This slowdown in purchasing helped shorten average supplier delivery times for the first time since March.
On a more positive note, employment levels rose for the second consecutive month in August, following the first expansion in nine months recorded in July.
Firms reported hiring additional staff to strengthen production capacity and support the completion of backlogged work, though the increase in workforce numbers remained marginal.
Commenting on the findings, David Owen, Senior Economist at S&P Global Market Intelligence, said: “Although business conditions continued to contract in August, the rate of decline was weaker than historical averages. Despite a second consecutive month of job growth, firms remain hesitant to raise new purchases due to fragile confidence in the outlook.”
He added that inflationary pressures continue to weigh on sales and output prospects, with Egypt’s official consumer inflation rate standing at 13.9% in July, down from the elevated levels of 2024.
