Egypt’s Private Sector Records Strongest Quarterly Performance in Five Years

Egypt’s non-oil private sector recorded its strongest quarterly performance since late 2020, marking the second consecutive improvement in business conditions in more than five years, according to the latest Purchasing Managers’ Index (PMI) released by S&P Global.

The report highlighted that Egyptian companies benefited from stronger demand and higher new orders toward the end of 2025, leading to a modest expansion in output, despite a slower pace of growth compared to November.

The headline PMI eased to 50.2 points in December from 51.1 in November, but remained above the neutral 50-point threshold for the second straight month, indicating continued improvement in non-oil private sector conditions.

Historically, a PMI reading of 50.2 points corresponds to annual GDP growth of around 5%, supporting expectations of firmer economic activity ahead.

Surveyed firms reported that improved demand conditions and rising customer spending were key drivers, with new business inflows rising for the second month in a row.