The report showed the headline PMI index rose to 51.1, up from 49.2 in October, marking the first expansion since February and the highest reading since October 2020.
A PMI above 50 reflects an overall improvement in operating conditions. S&P Global noted that historically, a reading of 51.1 corresponds to annual GDP growth of more than five percent.
Output and new orders rise at fastest pace in 5 years
Surveyed companies reported an improvement in market conditions that invigorated demand. Business activity rose for the first time since January, with the rate of expansion the strongest recorded in five years.
Manufacturing, construction, and services firms all reported growth in output, while wholesale and retail trade recorded a slight decline.
New business intakes increased, ending an eight-month downturn. Firms linked higher sales to improving demand conditions and a softening of price pressures.
Growth in new orders was also broad-based across manufacturing, construction, and services.
Employment stable, cost pressures ease
Despite improving output and orders, firms remained cautious about hiring. Employment levels were unchanged, continuing the subdued staffing trend in recent months.
The combination of rising demand and flat employment contributed to a further increase in outstanding work for the third consecutive month.
Overall input cost inflation fell to its lowest level in eight months. Companies often attributed the easing to a stronger Egyptian pound, which helped reduce import costs, though wage costs continued to rise.
With cost burdens moderating, the increase in selling prices was only marginal, the slowest recorded in seven months.
On the purchasing activity, the report indicates a drop in purchases of new inputs, which fell at a faster pace, although input inventories stabilized after a marked contraction in October.
Delivery times, a core component of the PMI, were incorporated into the index based on the standard methodology but were not identified as a key pressure point in the November data.
Business sentiment remains positive
Expectations for future activity stayed positive, though slightly lower than in October. Some firms pointed to improving demand signals as a reason for optimism.
“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 five percent in the fourth quarter,” said David Owen, senior economist at S&P Global Market Intelligence.
“The improved picture in the non-oil economy was linked to strengthening demand conditions and reduced pressure on business costs as stronger exchange rates helped importers. Not only did new orders rise at the quickest rate in five years, but the uplift was widespread, with manufacturers, construction firms, and service providers all noting an expansion,” Owen explained.
He said this suggests the improvement may be sustained, potentially encouraging firms to increase hiring and procurement activity.
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