Egypt: Private-sector PMI unchanged at two-year high in August; conditions still deteriorate
The S&P Global Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, was unchanged at July’s 49.2 in August. The reading was the joint-highest since August 2021. As such, the index remained below the 50.0 no-change threshold, where it has been mired since December 2020. The reading signaled a continued deterioration in private sector operating conditions from the previous month.
August’s outturn was largely due to output declining at the steepest pace in three months. This was offset by higher employment levels—for the first time since November 2022—as firms onboarded staff amid improving expectations for activity in the coming year.
Turning to prices, production expenses rose at the steepest pace in five months due to higher prices for raw materials and salaries, and a weaker Egyptian pound against the U.S. dollar. Consequently, selling charges rose at a quicker rate. Lastly, firms’ sentiment regarding output for the year ahead rose to a five-month high.