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Egypt’s non-oil private sector faced its sharpest downturn in nearly two years in March, as the ongoing regional conflict drove up operational costs and weakened consumer demand.
The S&P Global Egypt Purchasing Managers’ Index (PMI) fell to 48.0, marking the fourth consecutive month of decline and the lowest reading since April 2024.
While the figure remains below the 50.0 threshold that indicates economic growth, analysts noted it aligns closely with the nation’s long-term historical average.
The primary factors dragging down the index were significant drops in both output and new orders, which hit their lowest levels in approximately two years.
Businesses frequently pointed to the war in the Middle East as a major deterrent for clients, largely due to intensifying price pressures.
For the first time in the survey’s history, business expectations for the upcoming year dipped into negative territory, reflecting a growing sense of uncertainty regarding the duration and impact of the regional instability.
Despite the prevailing pessimism, economists suggest the underlying data still point toward an annual GDP growth rate of roughly 4.3%.
However, rising expenses remain a critical challenge; input prices surged at one of the fastest rates in eighteen months, driven by high fuel costs and a strengthening U.S. dollar.
In an effort to offset these war-related commodity increases, many firms have begun raising their own selling prices at the quickest pace seen in nearly a year
