Egypt’s non-oil private sector moved closer to stabilization in August, recording its slowest rate of deterioration in operating conditions since January.
According to the latest S&P Global Egypt Purchasing Managers’ Index (PMI) report, the headline index rose to 49.6 in August up from 46.8 in July, signaling a significant softening of the downturn as it edges closer to the crucial 50.0 growth threshold.
The latest survey data highlighted improvements across key sub-components, with both output and new orders declining at considerably slower rates.
Notably, the drop in new business reached its least marked level since February, supported by signs of recovering market activity and domestic demand.
Furthermore, employment increased for the first time since October 2025, reflecting renewed business optimism and expanding workforce capacities.
Despite ongoing headwinds—including purchasing contractions driven by material shortages, cash-flow strains, and regional shipping disruptions—business confidence surged to its highest level since June 2022.
Companies expressed strong optimism regarding expected new projects, tourism expansion, and upcoming branch openings, signaling a resilient outlook for the remainder of the year.
