Egypt: Non-oil private-sector operating conditions worsen in July
The S&P Global Egypt PMI fell to 49.7 in July from 49.9 in June. As a result, the index moved further below the 50.0 no-change threshold—below which it has languished since December 2020—and signaled a faster deterioration in non-oil private-sector operating conditions compared to the previous month.
July’s downturn was due to a faster contraction in output, which was scaled back due to weaker sales amid intensifying price pressures. Similarly, new business fell after June’s timid rise, leading firms to reduce their purchasing activities. Despite this, employment saw a slight increase. PMI data highlighted a mixed picture, with weakening domestic sales contrasting a rise in new export orders for the third consecutive month.
Regarding prices, both input costs and selling charges rose at the fastest pace since March, indicating a potential uptick in inflationary pressures. Lastly, business expectations for the future improved slightly. Nonetheless, optimism remained subdued, reflecting a cautious outlook regarding economic conditions ahead.