Egypt’s PMI for non-oil activity drops in October to lowest level in 5 months

The sharp decrease in October’s reading came after a similar decline in September at 48.7 points.

The decline in October's PMI reading reflects the persistent inflationary pressures that have been negatively impacting demand across Egypt's non-oil economy, resulting in weaker activity, S&P said in a report.

The report also noted that while the fall in employment was modest, it was the fastest decline since February.

“Similarly, businesses reported a slight decrease in their inventory levels for the first time in three months, after previously building stocks amid fears of rising input prices,” S&P highlighted.

In October, the report went on, the rising material prices and currency weakness led to another sharp increase in input costs for non-oil companies.

Supply chain obstacles, higher inflation rates in input costs, and difficulties in acquiring raw materials were identified as key factors behind the price rise, S&P explained.

Egypt's annual headline inflation rate decreased to 38 percent in September, down from 39.7 percent in August, but it is still significantly higher than the 15 percent recorded in September 2022, according to data from CAPMAS.