At the beginning of the year, Egypt's non-oil private sector experienced renewed growth as output and sales volumes rose, spurred by easing inflationary pressures, according to survey data from S&P Global released on Tuesday.
The Purchasing Managers' Index climbed to a 50-month high of 50.7 in January, up from 48.1 in December. An index reading above 50 signifies sector expansion.
This January upturn marked a positive shift for the non-oil private sector, which had been grappling with high inflation and the broader impacts of regional instability.
Among the index components, both business activity and new orders surged at the fastest rate in over four years. Employment levels stabilized in the non-oil sector, while purchases of inputs saw an uptick.
Regarding pricing, input price inflation significantly slowed to an eight-month low, primarily due to a deceleration in purchase price increases. Consequently, the rise in selling prices was the mildest in four and a half years.
"The ceasefire agreement between Israel and Hamas likely boosted market confidence in January," commented David Owen, Senior Economist at S&P Global Market Intelligence.
"Nonetheless, business expectations for the coming 12 months remain muted, indicating firms still harbor uncertainties about long-term economic stability," Owen added.
