Ahmed Kamel – Egypt Daily News
Egypt’s non-oil private sector recorded its strongest upturn in more than five years in November, buoyed by rising output, stronger demand, and easing cost pressures, according to the latest S&P Global Egypt Purchasing Managers’ Index (PMI) released on Wednesday.
The headline PMI rose to 51.1, up sharply from 49.2 in October, signaling the first expansion since February and the highest reading since October 2020. A figure above 50 indicates an overall improvement in operating conditions. S&P Global noted that historically, a PMI reading of 51.1 is consistent with annual GDP growth exceeding five percent.
Output and New Orders Accelerate
Business activity increased for the first time since January, with surveyed firms reporting the strongest rise in output in five years. The report attributed the surge to improved market conditions and a rebound in demand. Manufacturing, construction, and services companies all posted growth in output, while the wholesale and retail sector saw a marginal decline.
New orders also increased, ending an eight-month contraction. Firms cited better demand conditions and a slowdown in price pressures as key drivers behind the rise in sales. Growth in new business was broad-based across manufacturing, construction, and services.
Employment Steady as Backlogs Build
Despite the pickup in demand and activity, employment levels remained broadly unchanged. Companies continued to show caution in hiring, maintaining the subdued staffing pattern seen in recent months.
With demand rising and employment flat, outstanding work increased for the third month in a row, indicating growing pressure on operational capacity.
Cost Pressures Ease
Input cost inflation slowed to its weakest pace in eight months. Many firms attributed the easing to a stronger Egyptian pound, which lowered the cost of imported materials. However, wage costs continued to tick upward, contributing to overall expense levels.
The improvement in operating conditions marks a significant shift for Egypt’s non-oil private sector, which has faced prolonged volatility. November’s data suggests that stabilizing prices, recovering demand, and improving currency dynamics are beginning to translate into a more supportive business environment.
