(MENAFN) Egypt's non-oil private sector showed signs of improvement in November, with the Purchasing Managers' Index (PMI) rising slightly to 49.2 from 49 in October. This marks the lowest level in three months, as output and new business declines slowed, signaling potential stabilization in business conditions. The PMI reading is just below the 50-point mark, which separates economic growth from contraction. In August, the index had broken above neutral for the first time in over three and a half years, suggesting a gradual recovery.

According to David Owen, an economist at Standard & Poor's, the pace of decline in output and new business across the non-oil sectors slowed in November. This points to business conditions nearing stabilization, despite persistent challenges. Output levels fell for the third consecutive month, driven by weak customer demand. However, some companies reported a rebound in new business, providing signs of optimism for future growth.

The production sub-index, which reflects output levels, improved to 49.1 from 47.9 in October, indicating a slower pace of contraction. Similarly, the new orders sub-index rose to 48.7 from 47.6, suggesting an increase in demand and a potential shift toward expansion in the coming months.

While challenges persist, including weak customer demand, the data points to a slowing in the rate of decline and a potential turning point for Egypt's non-oil private sector. The signs of recovery in business activity provide cautious optimism for the economy in the coming months.

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