Egypt's non-oil private business activity falls in February as PMI slips to 48.9
Updated 3/3/2026 8:27:00 AM
Arab Finance: Egypt’s non-oil private sector returned to contraction in February after four months of improvement, as weaker demand and rising cost pressures weighed on business activity, according to the latest S&P Global Egypt PMI report.
The headline Purchasing Managers’ Index (PMI) fell to 48.9 in February from 49.8 in January, dropping below the 50.0 threshold that separates growth from contraction.
Despite the decline, the reading remained above the survey’s long-run average of 48.3.
David Owen, Senior Economist at S&P Global Market Intelligence, said: "The dip followed an unusually strong run of business performances, while the latest figures are consistent with annual GDP growth running at approximately 4.5%.”
Owen added: "Egyptian non-oil companies were notably exposed to the uplift in global commodity prices, with firms emphasizing the impact of higher prices for oil and metals, resulting in the sharpest increase in business costs for nine months and hitting margins at a time when firms are reluctant to raise their selling prices."
Survey data indicated that businesses reported a reduction in order book volumes during the latest survey period.
However, the rate of contraction in new business was softer than the long-run trend, despite being the quickest for five months.
Sales in the manufacturing, wholesale & retail, and services parts of the non-oil private sector declined, while construction was the only monitored sector where new orders enhanced.
Lower business activity and new orders led businesses to curb their capacity and purchases, providing a relatively muted outlook for future output.
Hence, employment slightly fell for the third month in a row, with firms mentioning both active job cuts and hiring freezes.
This was partly offset by hiring at some companies in line with operational improvements.
The report also indicated that rising global commodity prices hit import expenses, as key items such as oil and metals notched higher.
Total input costs surged at the fastest rate since May 2025. However, selling prices were up only fractionally, with just a small proportion of firms choosing to pass cost increases onto their customers.
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