This climb reflects an expansion in the non-oil private sector economy in August.

According to the report, the uplift came amid reports of a demand recovery, despite work easing slightly for the second month.

Furthermore, companies expanded their inventories and hired additional staff, as optimism towards future business activity has improved strongly since mid-2022.

The report also indicated that firms faced increased cost challenges due to the weakening of the Egyptian pound against the US dollar.

It added that purchase prices rose markedly, leading to an uplift in selling charges.  

During the first half of 2024, the PMI dipped from 48.1 in January to 47.1 in February amid the foreign currency shortage, as input and Suez Canal freight volumes increased.

Although the index began to recover in March recording 47.6, it slightly decreased again in April to 47.4 due to the difficult market conditions and decline in employment.

Egypt is working on increasing the private sector's share in its economic activity to 50 percent in 2025, per its commitments under the International Monetary Fund's $8 billion loan programme.

The country also seeks to improve the business and investment atmosphere by allowing the private sector to lead its economic growth and create more job opportunities.