CAIRO, April 6 – Egypt’s non-oil private sector recorded its steepest decline in nearly two years in March, as rising costs and weaker demand weighed on business activity, according to the latest S&P Global survey.
The Purchasing Managers’ Index (PMI) fell to 48.0 in March from 48.9 in February, marking the fourth consecutive monthly decline and its lowest level since April 2024. The reading remains below the 50.0 mark, which separates expansion from contraction, although it is close to the long-term average of 48.2.
The downturn was largely driven by declines in output and new orders, both of which dropped to their weakest levels in almost two years. Businesses linked the slowdown to ongoing regional tensions, which have pushed up costs and reduced client demand.
Input prices rose sharply during the month, recording one of the fastest increases in the past 18 months. Firms pointed to higher fuel prices and broader commodity cost pressures, alongside the impact of a stronger US dollar.
In response, companies raised their selling prices at the quickest pace in ten months, though the increase remained moderate.
Business sentiment also weakened. For the first time on record, expectations for the year ahead slipped into negative territory, reflecting growing uncertainty tied to the conflict. However, the level of pessimism was described as relatively mild.
Despite the contraction in private sector activity, underlying economic indicators suggest some resilience. According to S&P Global Market Intelligence, the latest PMI reading is still consistent with annual GDP growth of around 4.3%, indicating that broader economic momentum remains intact.
