CAIRO (Reuters) – Egypt’s non-oil private sector slipped into contraction in March, marking the first downturn of 2025 as demand weakened, S&P Global reported on Thursday.
The Purchasing Managers’ Index (PMI) fell to 49.2 from 50.1 in February, dipping below the 50.0 threshold that separates growth from contraction.
The decline was driven by a fall in new orders, both domestically and internationally, leading firms to reduce output, purchases, and staffing levels.
Despite the downturn, the contraction was mild and softer than historical trends.
Input costs rose at the slowest pace in nearly five years, partly due to a stabilised Egyptian pound against the US dollar.
“Firms will be particularly buoyed by the improved picture for inflation,” said David Owen, Senior Economist at S&P Global Market Intelligence.
The construction sector was a bright spot, showing robust growth in output and new work, contrasting with declines in manufacturing and wholesale & retail segments.
Employment levels fell slightly, with most firms maintaining stable payrolls.
Looking ahead, non-oil firms expressed subdued optimism, with output expectations at one of the lowest levels in the survey’s history. Only 2% of firms reported a positive outlook, reflecting uncertainties over the local economy and global trade dynamics.
(Reporting by Reuters; Editing by Hugh Lawson)
