Cairo - Mubasher: The headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) fell to 48.9 in February 2026 from 49.8 in January, according to the latest S&P Global PMI data.
The reading remained below the 50.0 neutral threshold, indicating a monthly contraction, but stayed above its long-run average of 48.3.
Business activity declined for the first time in four months, ending a three-month expansion sequence, as softer demand and accelerating cost pressures weighed on firms’ operations.
New orders also contracted at the fastest pace in five months, although the rate of decline remained modest and softer than the long-run trend.
The sales fell across key sectors, including manufacturing, wholesale and retail, and services. Meanwhile, the construction was the only sector to record improved order volumes.
The slowdown in output and demand prompted firms to scale back capacity, with employment dropping for the third consecutive month due to a mix of job cuts and hiring freezes.
Purchasing activity also declined, though at a softer pace than in January, helping supplier delivery times remain broadly stable.
On the cost side, average input prices rose sharply in February, driven by higher material and wage costs.
Survey respondents highlighted the impact of rising global commodity prices, particularly oil and metals, which pushed total input costs up at the fastest rate since May 2025.
Meanwhile, the selling prices increased only marginally, as most firms refrained from fully passing higher costs onto customers.
David Owen, Senior Economist at S&P Global Market Intelligence, said: “The February PMI data pointed to a slowdown in the Egyptian non-oil private sector as activity curtailed and new order volumes weakened.”
“Egyptian non-oil companies were notably exposed to the uplift in global commodity prices, with firms emphasising the impact of higher prices for oil and metals, resulting in the sharpest increase in business costs for nine months and hitting margins at a time when firms are reluctant to raise their selling prices. Firms will therefore be keen to see commodity markets settle,” the Economist added.
