Egypt PMI remains above 50 in December despite easing momentum
Updated 1/6/2026 8:35:00 AM
Arab Finance: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Egypt declined to 50.2 in December 2025 from 51.1 in November, yet still above the 50.0 no-change mark for the second consecutive month, the latest S&P Global PMI data showed.
Remaining within the growth trajectory, Egypt's non-oil private sector saw a continued upturn in business conditions at the end of 2025, marking only the second instance of back-to-back advances in over five years.
As a result, firms benefited from increased new orders, which slightly drove output expansion despite a slower growth pace.
Improvement in business conditions reflected reports from survey panellists of stronger demand conditions and higher client spending.
Inflows of new work climbed for the second consecutive month, although the rate of growth eased since November.
In this regard, companies expanded their output, with the manufacturing and construction sectors experiencing growth. Meanwhile, wholesale and retail as well as services witnessed declines.
In December, non-oil firms reported a fresh increase in their purchasing activity for the first time in 10 months.
However, some vendors reported shortages, which led to a decrease in input stocks for the third month in succession.
As for staffing, companies dealt with these improvements with caution, resulting in a drop in employment.
David Owen, Senior Economist at S&P Global Market Intelligence, said: “The uplift in sales arrived amid a softening of inflationary pressures in the Egyptian economy, which has enabled businesses and consumers to spend with more confidence.”
"The overall upturn in business conditions was softer in December compared to one month ago, suggesting this growth trend should be treated with caution. Firms also face continued uncertainties in the domestic and global sphere, which has made them hesitant to show optimism,” Owen added.
Meanwhile, the outlook for the next 12 months was neutral in December, reflecting subdued confidence levels during the latter half of 2025.
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