Egypt's non-oil private sector recorded its fastest growth in five years in November, driven by significant increases in both output and new orders, according to a business survey released on Wednesday.

The S&P Global Egypt Purchasing Managers’ Index (PMI) rose to 51.1 in November, up from 49.2 in October, surpassing the neutral 50.0 mark that separates expansion from contraction for the first time since February, and marked the highest level since October 2020.

Output levels increased for the first time since January, with most business sectors covered in the survey reporting improved activity. The only exception was the wholesale and retail segment, which registered a decline.

New business inflows also rebounded, ending an eight-month streak of decline. Growth was recorded across manufacturing, construction, and services, indicating a broad-based recovery in Egypt’s non-oil private sector.

Despite the positive momentum in output and demand, companies remained cautious about expanding their workforce. Employment levels were unchanged in November, suggesting that firms are still hesitant to hire amid broader economic uncertainties.

Cost inflation eases as pound strengthens

Overall cost inflation eased to its lowest level in eight months. The strengthening of the Egyptian pound against the US dollar helped lower the cost of imported goods, easing pressure on input prices. As a result, prices charged by non-oil firms rose only slightly.

David Owen, Senior Economist at S&P Global Market Intelligence, said: "The Egyptian non-oil private sector registered its best upturn in business conditions in over five years in November, which hints at a strong end to 2025."

"Historically speaking, the latest PMI reading signals that year-on-year GDP growth could rise above 5% in the fourth quarter."

Business confidence remained positive in November, although it softened slightly from the previous month, indicating only a modest degree of optimism about future activity.

Egypt's inflation rises in October after fuel price hike

It is worth noting that Egypt’s annual inflation rate rose in October 2025 for the first time in five months, driven by a government fuel price hike that added upward pressure on consumer costs. The increase may prompt the central bank to pause interest rate cuts at its upcoming policy meeting.

Urban consumer prices rose 12.5% year-on-year in October, up from 11.7% in September, according to Egypt’s official statistics agency last month. Every month, inflation remained steady at 1.8%, the same pace as the previous month.

The uptick marks a shift after months of slowing inflation, which had eased from a record 38% in September 2023. The recent trend was aided by currency stabilization and favorable comparisons to the previous year’s inflation spike.