FX.co ★ Egypt Non-Oil Private Sector Activity Softens in January

The S&P Global Egypt Purchasing Managers' Index (PMI) recorded a slight decline to 49.8 in January 2026, down from 50.2 in December, indicating a marginal downturn in non-oil business conditions as it dipped just below the 50 mark. However, output continued to increase for the third consecutive month, aided in part by stronger demand from international markets. Despite this, overall new orders saw a minor decline after recent gains, suggesting a softening in domestic sales. With production levels still on the rise and a reduction in incoming new jobs, companies concentrated on reducing backlogs, which decreased at the fastest rate seen in nearly three years. Due to this excess capacity, businesses opted to reduce staffing, resulting in the steepest decline in employment since late 2023. Additionally, purchasing activity showed signs of easing. Cost pressures remained subdued, with input prices increasing at a slow pace, enabling firms to lower selling prices for the first time since mid-2020. Despite the deceleration, the outlook remains cautiously optimistic, with businesses anticipating gradual demand improvements in the upcoming year.