Backed by sharp increases in output and new orders, Egypt’s non-oil private sector recorded its fastest growth in five years in November 2025, according to the latest S&P Global Egypt Purchasing Managers’ Index (PMI).
The indicator, which rose to 51.1 last month from 49.2 in October, topped the 50.0 threshold that separates growth from contraction for the first time since February 2025. The last time the index touched a higher territory was in October 2020.
Industrial output levels rose for the first time since January this year, with most of the business segments covered by the survey recording activity upturns. Wholesale and retail were the only sectors to register lower activity.
While new business intakes increased, putting an end to eight consecutive months of decline, all the key sectors of the broader Egyptian economy, including manufacturing, construction and services, recorded growth.
However, one dampener here has been the unemployment levels, which remained unchanged, as companies were reluctant to hire more workers. The ratio stayed at 6.4% during the third quarter (Q3) of 2025, up 0.3% from Q2 2025.
As per the Arab Finance, “The labour force size was estimated at 34.727 million individuals in Q3 2025, higher by 3.3% than 33.614 million individuals in the previous quarter. The urban labour force reached 15.205 million individuals, while the rural labour force stood at 19.522 million individuals.”
Overall cost inflation decelerated, dropping to its lowest level in eight months, with a stronger local pound currency versus the dollar helping reduce some import costs. Also, prices charged by non-oil firms saw a marginal uptick.
“The Egyptian non-oil private sector registered its best upturn in business conditions in over five years in November, which hints at a strong end to 2025,” said David Owen, senior economist at S&P Global Market Intelligence.
“Historically speaking, the latest PMI reading signals that year-on-year GDP growth could rise above 5% in the fourth quarter.”
Expectations for future activity remained positive in November, despite softening from October, pointing to only a mild degree of overall business confidence.