2025.09.0304:26:54UTC+00Egypt Non-Oil Private Sector Contraction Persists

The S&P Global Egypt Purchasing Managers’ Index (PMI) decreased to 49.2 in August 2025, down from 49.5 in July, indicating a more pronounced contraction in the non-oil private sector and marking the sixth consecutive month of decline. This downturn resulted from sharper decreases in both output and new orders, as ongoing weak economic conditions and persistent inflation continued to suppress demand. In response to diminishing sales, firms scaled back their purchasing activities and reduced their inventories. However, this reduction eased the pressure on suppliers, resulting in shorter delivery times for the first time since March. Concurrently, companies increased staffing for the second consecutive month, building on the rebound seen in July, as they aimed to manage the backlog of work. Input cost pressures also diminished, with inflation hitting its lowest point in five months and marking the weakest rate in over four years. Nevertheless, in an effort to safeguard profit margins, businesses increased their output charges at the highest pace since May. Looking forward, optimism remained fragile, with confidence levels remaining largely unchanged from July and continuing to hover near record lows.