Egypt’s non-oil private sector recorded its strongest improvement in more than five years in November, signalling a welcome rebound for businesses after months of sluggish activity. According to the latest report from S&P Global, the country’s Purchasing Managers’ Index (PMI) rose sharply to 51.1, up from 49.2 in October — the highest reading since October 2020 and the first return to expansion since February.
The PMI is a widely watched indicator that measures business conditions in the private sector. Any reading above 50 indicates improvement, while figures below 50 reflect contraction. November’s result therefore shows that many companies across Egypt are seeing better operating conditions and rising activity after a long period of pressure from inflation, currency challenges, and weak demand.
S&P Global noted that businesses surveyed reported higher output, an increase in new orders, and improved supply conditions. These gains came as inflationary pressures eased compared with earlier in the year, allowing firms to stabilise costs and plan ahead with greater confidence.
Economists say the latest figure signals a broad pickup across industries, including manufacturing, services, and construction. Some sectors such as wholesale and retail continue to lag, but overall momentum appears to be shifting in a positive direction.
S&P Global explained that a PMI reading around 51.1 has historically been associated with annual GDP growth of more than 5%, suggesting Egypt could see a stronger-than-expected finish to 2025 if this trend continues. While the PMI is not the same as GDP and cannot predict growth with certainty, it is a useful indicator of how businesses are feeling and performing on the ground.
The report also noted that employment levels remained broadly stable, with companies maintaining their workforce size as they monitored the strength of the recovery.
The November improvement comes at a time when Egypt has been working to cool inflation, stabilise the currency, and support local industry. For many firms, the new PMI reading offers a degree of relief and renewed optimism.
Economists caution that sustained improvement will depend on continued stability, stronger investment flows, and further easing of price pressures. Still, November’s sharp rise marks a meaningful shift — and one that suggests the economy may be gaining firmer footing heading into 2026.
