Egypt’s non-oil private sector contracts in March ’25

Egypt’s non-oil private sector contracted in March, with the S&P Global Egypt Purchasing Managers’ Index (PMI) dropping to 49.2 from 50.1 in February, signaling a mild deterioration in business conditions.

Weaker demand led to a decline in sales, output, and hiring, reversing gains seen earlier in 2025. Purchasing activity fell for the first time in four months, while job cuts continued as firms adjusted to subdued market conditions.

Inflationary pressures eased significantly, with input prices rising at the slowest pace in nearly five years. The Egyptian pound’s stabilisation against the US dollar contributed to cost relief, and firms raised selling prices only slightly.

While most sectors struggled, the construction industry showed resilience, posting robust growth in output and new orders. However, business confidence remained weak, with expectations for future output falling to one of the lowest levels on record.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama