Egypt's private sector grows in January
(MENAFN) Egypt's non-oil private sector experienced expansion in January, marking its strongest performance in over four years and the first instance of growth since August. A business survey released on Tuesday attributed this improvement to increased production and sales volumes. The S&P Global Purchasing Managers' Index (PMI) for Egypt climbed to 50.7 in January, up from 48.1 in December, signaling a renewed improvement in the sector's overall health at the beginning of 2025.
A PMI reading above 50.0 signifies expansion, while a reading below this level indicates contraction. The January figure was the highest since November 2020, reflecting a recovery in domestic market conditions and a reduction in cost pressures, both of which contributed to a boost in sales. Despite this positive trend, concerns remain regarding the sustainability of the improvement, affecting business sentiment and employment prospects.
Market analysts suggest that the ceasefire agreement between Israel and Hamas may have helped restore confidence in January. However, companies remain cautious about the future, as business expectations for the next 12 months remain weak. This indicates ongoing uncertainty about Egypt’s longer-term economic stability, despite the recent improvement in market conditions.
Indicators of production and new orders also showed signs of recovery. The production sub-index increased to 51.1 from 47.1 in December, while the new orders index rose to 51.3 from 46.4. These gains highlight renewed business activity, suggesting that demand and operational efficiency are beginning to recover, even as concerns about the economic outlook persist.
MENAFN04022025000045015839ID1109164321
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.