(Reuters) -Business conditions in Egypt’s non-oil private sector declined slightly in September as new orders fell at the fastest pace in five months, a survey showed on Sunday.
S&P Global’s Egypt Purchasing Managers’ Index (PMI) slipped to 48.8 last month from 49.2 in August, marking the lowest reading in three months. A PMI below 50 indicates contraction.
The downturn was driven by a significant drop in new sales, with order book inflows decreasing due to subdued economic conditions, rising prices, and increased wage pressures.
Employment growth stalled after two months of small increases, with nearly all firms reporting no change in staffing levels.
“Although companies are struggling to gain new work amid challenging market conditions as a whole, they can take some comfort from a softening of input cost pressures,” said David Owen, Senior Economist at S&P Global Market Intelligence.
Input price inflation eased to its lowest rate since March, aided by a stronger Egyptian pound against the U.S. dollar.
However, staff costs rose at the highest rate since May 2024, reflecting increased living expenses and a higher minimum wage.
Despite the decline in purchasing activity, inventory levels rose for the first time since May, as some firms opted to keep more inputs in reserve.
Export sales fell for the 10th consecutive month, with the rate of contraction the sharpest in three years.
Business confidence dipped, with output expectations for the coming year at one of the lowest levels in the survey’s history.
(Reporting by Reuters; Editing by Hugh Lawson)
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