Egypt's non-oil private sector continued to see business activity decline in October, according to the latest Data Purchasing Managers' Index Survey.
The headline Purchasing Managers' Index (PMI) rose slightly to 49.0 from 48.8 in September, remaining below the neutral 50.0 threshold for the second month in a row. This result indicates a general decline in working conditions.
Strong cost pressures led to higher selling prices across businesses, impacting new orders.
Although input cost inflation has slowed from a six-month high in September, companies still face mild pressure on sales and employee costs.
Furthermore, the survey showed that the contraction affected a wide range of sectors last October, with the construction industry seeing the largest declines in activity and sales.
Average prices charged by non-oil companies rose significantly in October, registering a rapid increase for the third month in a row. This increase was mainly due to higher input costs, such as raw materials and utilities, which were affected by the rise in the value of the US dollar, leading to higher import costs.
Despite the decline in activity, companies increased their headcount for the fourth month in a row, with October seeing the fastest pace of hiring since May.
Companies also increased stock levels as a precaution against future cost pressures, although overall input purchases fell for the first time in three months, easing some pressure on the supply chain.
Supplier delivery times were slightly longer for the third month in a row but improved overall.
In October, non-oil companies expect business activity to rise over the next 12 months, although confidence remains low.
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