The S&P Global Egypt PMI remained unchanged at 47.2 in October 2026, signaling a contraction in non-oil private sector activity for the tenth consecutive month. Output and new orders both declined at their fastest rates in four months, as weak client demand, reduced purchasing power, and ongoing Middle East conflict weighed on business activity. Employment also returned to contraction, ending a two-month period of job creation, while backlogs of work fell for the first time since January. Meanwhile, input cost inflation accelerated to a five-month high, driven by higher prices for imported materials, energy, and shipping, as well as currency depreciation. Consequently, firms raised selling prices at the fastest pace since June to pass on higher operating costs. Looking ahead, business confidence weakened further to a seven-month low, with firms expressing concerns over persistent inflation, geopolitical tensions, and supply chain disruptions.
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