Egypt's non-oil private sector saw its slowest contraction in eight months in October, with business output and new orders falling at softer rates, according to S&P Global's Purchasing Managers' Index (PMI). The headline Egypt PMI rose to 49.2 from 48.8 in September, remaining below the neutral 50 threshold but above the long-term series average of 48.2. The data, collected between 9 and 23 October, suggest GDP growth has held steady at around 4.6 per cent year-on-year at the start of the fourth quarter. Output levels stabilised as the downturn in activity eased, supported by growth in the manufacturing sector, which offset weakness in services, wholesale, retail, and construction. New orders also declined at the slowest pace in five months, with manufacturers seeing an uptick in demand. Employment and input purchases were largely steady, while backlogs increased for a second month. Business sentiment strengthened slightly, driven by expectations of stronger client demand and better domestic conditions. However, rising wage costs pushed input prices higher at the fastest rate since May, with companies reporting the sharpest wage inflation since October 2020 amid staff pay adjustments to offset living costs. Despite this, selling price inflation eased slightly as firms absorbed costs to sustain sales. "The Egypt PMI stayed above its long-term trend in October, pointing to a year-on-year GDP growth rate of about 4.6 per cent." said David Owen, Senior Economist at S&P Global Market Intelligence. Attribution: Amwal Al Ghad English Subediting: Y.Yasser Download
