Egyptian non-oil private PMI rises to 48.4 in November

CAIRO – 5 December 2023: Egypt’s PMI increased slightly from 47.9 in October to record 48.4 in November showing a mild decline in the health of the Egyptian non-oil private sector.

These levels however, remain higher than expected, given the prevailing circumstances, according to the latest Purchasing Managers Index (PMI) business survey data from S&P Global.

Despite persistent falls in output and new orders, businesses have maintained a positive outlook for the next 12 months, though slightly weaker than earlier recorded. This indicates the optimism and resilience of these firms to overcome the challenges and achieve future growth.

While downturns in output and new business were observed across various sectors, wholesale and retail companies were particularly affected, experiencing significant declines.

One of the major factors affecting confidence levels is elevated inflation rates. However, it is worth noting that the rate of increase in purchase prices has remained relatively controlled compared to the previous year.

In fact, the current purchase price inflation is considerably milder than the peaks observed in late 2022 and early 2023. This indicates that businesses have effectively managed the impact of inflation by implementing strategic measures.

Furthermore, despite the challenges posed by inflation, non-oil private sector firms have demonstrated their commitment to maintaining employment levels.