Egypt Non-Oil Private Sector Activity Softens in January

The S&P Global Egypt PMI edged down to 49.8 in January 2026 from 50.2 in December, slipping just below the 50 threshold. The latest reading signals a marginal deterioration in non-oil business conditions, even as output rose for a third straight month. Production growth was supported partly by stronger foreign demand, but overall new orders declined slightly after recent gains, pointing to softer domestic sales. With output still rising and fewer new jobs coming in, firms focused on clearing backlogs, which fell at the fastest pace in nearly three years. Spare capacity led companies to trim staffing levels, marking the sharpest drop in employment since late 2023, while purchasing activity also eased. Cost pressures remained muted, with input prices rising slowly, allowing firms to cut selling prices for the first time since mid-2020. Despite the slowdown, sentiment stayed cautiously positive, with businesses expecting gradual improvements in demand over the year ahead.