Egypt’s non-oil private sector activity weakens in Sept – PMI

Egypt’s non-oil private sector activity dropped at a faster pace in September 2026, with the S&P Global Egypt Purchasing Managers’ Index (PMI) falling to 47.2 from 49.6 in August, while employment increased for the second consecutive month.

The PMI reading fell below its long-run average of 48.2, signalling a sharper downturn in business conditions. Output and new orders declined at accelerated rates amid weaker demand, geopolitical disruptions and inflationary pressures. The latest data were consistent with annual GDP growth slowing to approximately 4.3 per cent.

Despite weaker demand, companies continued hiring to expand capacity and address rising backlogs, marking the first consecutive monthly increase in employment in more than a year. However, job creation remained slight and slowed from August.

Businesses reduced their purchases of materials and components for the sixth consecutive month, while inventories fell for the third month running.

Meanwhile, companies raised selling prices sharply as operating costs remained elevated, driven by higher oil, metals, electricity and transportation costs. Although output price inflation eased slightly from August, it remained steep and above its historical trend. Wage inflation, however, slowed to an eight-month low.

However, confidence moderated from August’s more than four-year high, while faster declines in new orders and persistent cost pressures continued to weigh on businesses. Owen highlighted the ongoing Middle East conflict and recent Houthi militant attacks as key risks to Egypt’s domestic economic outlook.