David Owen, Chief Economist at S&P Global Market Intelligence, stated: "The non-oil private sector recorded its strongest improvement in business conditions in over five years in November, indicating a strong end to 2025."
Business conditions in Egypt's non-oil private sector improved significantly in November, supported by a decline in inflationary pressures and a slower pace of rising selling prices, according to the latest Purchasing Managers' Index (PMI) report by S&P Global.
The report revealed that the seasonally adjusted PMI rose to 51.1 points in November, compared to 49.2 points in October, marking the first expansion in the sector's performance since February and the highest reading since October 2020. This level typically reflects annual GDP growth exceeding 5%.
David Owen, Chief Economist at S&P Global Market Intelligence, stated: "The non-oil private sector recorded its strongest improvement in business conditions in over five years in November, indicating a strong end to 2025."
The current reading of the index historically suggests that the annual GDP growth rate could rise above 5% in the fourth quarter.
Survey participants noted that the improved market conditions supported demand, leading to an increase in production for the first time since January, with the highest growth rate in five years.
The manufacturing, construction, and services sectors all saw growth compared to October, while wholesale and retail remained the only sector to experience a decline.
The volume of new business ended eight months of contraction, driven by increased demand from new and existing clients, partly due to the easing of price pressures. Despite strong demand, employment levels remained unchanged, contributing to a rise in unfinished work for the third consecutive month.
Inventories stabilized after a sharp decline in October, while input purchases decreased at a faster pace. Inflationary pressures on costs eased to their lowest level in eight months, with many businesses reporting that the strength of the Egyptian pound against the dollar helped reduce import costs, despite continued wage increases.
Selling prices rose slightly, marking the weakest increase in seven months due to the slowdown in input cost growth. Businesses' expectations for future activity remained positive in November, although less optimistic than in October, as demand trends became clearer.
