Egypt non-oil private sector PMI falls to 47.2

Businesses said the deterioration reflected weaker customer demand, ongoing geopolitical disruptions and persistent inflationary pressures. Output and new orders both fell at faster rates than in August, while the index also slipped below its long-term average of 48.2, signaling conditions are weaker than normal for the survey.

The data matter for investors because they show private-sector momentum remains fragile even after August’s seven-month high. That weak footing can weigh on earnings expectations for consumer-facing companies, industrial suppliers and smaller firms reliant on domestic orders, while also limiting confidence in a broad-based rebound.

There were a few offsets. Employment rose for a second straight month, the first back-to-back gain in staffing in more than a year, though hiring remained modest. Backlogs rose for a fifth month, suggesting some work is still in the pipeline, but business confidence eased from August’s more than four-year high.

Inflation remains the biggest drag. Companies reported higher costs for oil, metals, electricity and transport, though wage inflation slowed to an eight-month low. Firms continued to pass costs through to customers, keeping selling-price inflation above the survey average even as the pace eased slightly.

Purchasing activity fell for a sixth straight month, and inventories also declined for a third month, pointing to caution in supply chains and working capital management. The PMI adds to signs that Egypt’s private sector recovery remains uneven and vulnerable to any further shock in demand or input costs.