Egypt’s Non-Oil Private Sector Declines Again in August

Egypt’s Non-Oil Private Sector Declines Again in August

Egypt’s non-oil private sector shrank for the sixth month in a row in August, as weak demand continued to hurt business activity.

The S&P Global Purchasing Managers’ Index (PMI) fell slightly to 49.2 in August from 49.5 in July. A reading below 50 signals a decline.

Although conditions worsened, the slowdown was less severe than the long-term average of 48.2.

All tracked sectors saw drops in activity and new orders, mainly due to weak customer demand and high inflation. Output and new orders fell a little faster than in July but were still better than past averages.

On the cost side, input price inflation eased to its lowest level since early 2021. But selling prices rose more quickly, helping companies narrow the gap between input and output costs.

Business confidence about the year ahead stayed weak, with little change from the low levels seen in June and July.

Employment trend

Despite the overall downturn, jobs increased for the second month in a row after nine months of no change. Companies hired more staff to handle backlogs, though the rise in jobs was small.

Expert view

David Owen, senior economist at S&P Global, said ongoing inflation remains a major challenge for sales and output. However, he added that with business costs now at one of their lowest levels in years, companies may be able to lower prices and attract more customers if the trend continues.

Economic outlook

In April, the International Monetary Fund (IMF) raised its growth forecast for Egypt’s economy to 3.8% in 2025 and 4.3% in 2026, up from January’s estimates of 3.6% and 4.1%.

In the second quarter of this fiscal year, Egypt’s economy grew 4.3%, its fastest quarterly growth in over two years.

Published: 4th September 2025

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