Egyptian Purchasing Managers' Index Drops to 47.2 in September as Output and Orders Decline

Data from S&P Global showed that Egypt's Purchasing Managers' Index dropped to 47.2 points in September 2026 from 49.6 points in August, moving further away from the 50-point mark separating growth from contraction, signaling a worsening contraction in the non-oil private sector.

The company explained that output and new orders declined at a faster pace during the month, attributing this to weak market conditions, geopolitical disruptions, and inflationary pressures weighing on demand.

Conversely, employment rose for the second consecutive month, indicating that companies still maintain a degree of confidence despite the slowdown in activity.

David Owen from S&P Global stated that companies remained optimistic about the coming year, which matters to the Arab reader because the non-oil private sector is a key driver of jobs and investment in Egypt, while weakening new orders dampen labor demand and put pressure on tax revenues and the local currency.

What do these terms mean?

Purchasing Managers' Index (PMI): A monthly index based on a survey of purchasing managers at companies, measuring output, new orders, employment, and purchasing prices, and is considered one of the fastest indicators expressing the state of activity. The 50-point level indicates stability, above which represents growth, and below which represents contraction. Non-oil private sector: Economic activities falling outside the oil extraction and refining sector, such as manufacturing, trade, and services.