The reading remained below the 50.0 mark that signals expansion, though it stayed close to the survey’s long-term average of 48.2.
Egypt’s non-oil private sector recorded its steepest decline in nearly two years in March, as escalating tensions in the Middle East pushed operating costs higher and weakened customer demand, according to the S&P Global Egypt Purchasing Managers’ Index (PMI) data.
The S&P Global Egypt Purchasing Managers' Index (PMI) fell for the fourth month in a row, dropping to 48.0 in March, down from 48.9 in February, marking its lowest level since April 2024. The reading remained below the 50.0 mark that signals expansion, though it stayed close to the survey’s long-term average of 48.2.
The downturn was largely driven by declines in output and new orders, both of which reached their weakest levels in almost two years. Many businesses attributed the slowdown to the regional conflict, which has increased price pressures and reduced client spending.
For the first time, companies’ expectations for the next 12 months turned negative, reflecting growing uncertainty linked to ongoing geopolitical tensions. However, the overall level of pessimism was described as moderate rather than severe.
Despite the contraction, David Owen, Senior Economist at S&P Global Market Intelligence, noted that the March PMI reading still corresponds to an estimated annual GDP growth rate of around 4.3 %, suggesting that the domestic non-oil sector continues to show underlying resilience.
Meanwhile, cost pressures remained a major challenge. Input prices rose at one of the fastest rates seen in the past 18 months, driven by higher fuel costs, increases in war-related commodity prices, and the continued strength of the U.S. dollar.
