Egypt’s non-oil private sector records strong growth in November as PMI hits 5-year high
Updated 12/3/2025 8:06:00 AM
Arab Finance: Business conditions in Egypt’s non-oil private sector improved in November, as cost pressures eased and selling prices rose at a slower pace, with firms reporting the fastest increases in output and new orders in five years, according to the latest S&P Global Egypt Purchasing Managers’ Index™ (PMI) report.
The seasonally adjusted headline PMI rose to 51.1 in November from 49.2 in October, marking the first expansion in operating conditions since February and the highest level since October 2020.
Based on output, new orders, employment, supplier delivery times, and inventories, the index historically aligns with annual gross domestic product (GDP) growth of more than 5% at this reading.
David Owen, Senior Economist at S&P Global Market Intelligence, said: “The Egyptian non-oil private sector registered its best upturn in business conditions in over five years in November, which hints at a strong end to 2025. Historically speaking, the latest PMI reading signals that year-on-year GDP growth could rise above 5% in the fourth quarter."
Survey participants noted that better market conditions supported demand, leading to higher output for the first time since January, with the rate of expansion being the firmest in five years.
Manufacturing, construction, and services companies all recorded increases compared to October, while wholesale and retail remained the only segment to show a decline.
New business rose in November, ending eight months of contraction. Firms attributed the increase in orders from new and existing customers partly to easing price pressures. Manufacturing, construction, and services all reported higher sales.
Despite stronger demand, employment levels were unchanged, continuing the pattern seen in recent months. Steady staffing contributed to a rise in outstanding work for the third consecutive month.
Input inventories stabilized after a notable drop in October, although purchases of new inputs declined at a faster pace.
Overall cost inflation slowed to its weakest level in eight months. Many firms said the stronger pound against the USD helped ease import costs, though wage increases continued.
With slower growth in input costs, output prices rose only slightly—the mildest increase in seven months.
Expectations for future activity remained positive in November, though they softened from October. Some firms cited clearer demand signals as a reason for maintaining a generally optimistic outlook.
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