The softening of declines in business activity and new orders marks the least pronounced downturn in three months.
Egypt’s non-oil private sector is beginning to show signs of recovery, with November’s Purchasing Managers’ Index (PMI) edging up to 49.2 from October’s 49.0 according to the PMI data from S&P Global. While still below the growth threshold of 50.0, the latest figures suggest that the sector may be on the cusp of stabilization after months of contraction.
The softening of declines in business activity and new orders marks the least pronounced downturn in three months. Manufacturing emerged, with modest growth in goods orders helping to offset weaker performance in other areas such as construction, wholesale and retail, and services. Companies have begun to report improvements in demand, a hopeful sign of better days ahead.
Inflationary pressures also eased, with input prices rising at their slowest pace since July. Lower wage growth contributed to this trend, offering a potential reprieve for consumers and businesses alike. Although challenges remain, such as the impact of a stronger US dollar on purchasing costs, the overall moderation in inflation is a positive signal for the coming months.
Employment levels, however, saw a slight reduction, driven by cautious hiring as businesses continued to adapt to fluctuating demand.
David Owen, Senior Economist at S&P Global Market Intelligence, stressed on the resilience within the sector, noting that “the slowdown in declines points to an environment that is inching closer to stability, with manufacturing showing encouraging signs of growth.”
Input prices, at 55.9, rose at the slowest pace since July, with lower wage growth contributing to a four-month low in cost inflation. However, purchase prices continued to climb, partly due to a stronger US dollar.
Firms remained cautious about future business activity. Output expectations for the year ahead, at 50.5, was the second lowest the series’ history.
“Declines in output and new business slowed across the non-oil sector in November, indicating that business conditions are close to stabilising,” Owen highlighted.
