(Reuters) -Egypt’s non-oil private sector experienced its mildest contraction in three months in October, as new orders and output declined at a slower pace, a business survey showed on Tuesday.
The S&P Global Egypt Purchasing Managers’ Index (PMI) rose to 49.2 in October from 48.8 in September, remaining below the 50.0 threshold that separates growth from contraction. However, the reading was above the series average of 48.2, indicating a marginal decline in business conditions.
Manufacturing led the way, with a slight increase in new order volumes, while other sectors such as services, wholesale and retail, and construction faced weaker activity. The overall decline in new business was the least pronounced in five months.
Employment rose for the third time in four months, driven by steadier demand, although job creation was minimal.
Price pressures intensified, with input costs rising at the fastest rate in five months, driven by the sharpest increase in wage costs since October 2020. Despite this, firms absorbed much of the cost increases, leading to a modest easing in the rate of selling price inflation.
“Momentum in domestic markets has improved slightly at the start of the fourth quarter,” said David Owen, Senior Economist at S&P Global Market Intelligence. “However, rising cost pressures could slow things down if companies struggle to absorb these costs in the months ahead.”
Expectations for future activity improved, with firms expressing optimism about client demand and domestic economic conditions, although they remained below the long-term trend.
(Reporting by Reuters; Editing by Hugh Lawson)
