Egypt’s non-oil private sector contracts in May – PMI

ypt’s non-oil private sector remained in contraction in May, with the S&P Global Egypt PMI rising to 47.1 from 46.6 in April but staying below the 50.0 growth mark for a fifth consecutive month.

Input costs increased at their fastest pace since January 2023, driven by higher fuel and electricity prices, currency weakness and the strongest wage pressures since January 2018. Nearly half of firms reported higher costs, leading to one of the sharpest increases in selling prices on record and the second-highest output price inflation in the survey’s history.

New orders fell for a fifth straight month, remaining near April’s 37-month record decline, while output continued to contract despite slight rebounds in manufacturing and construction.

Employment dropped at its fastest pace since June 2020, and supplier delivery times lengthened at the fastest rate in nearly four years amid Middle East-related shipping disruptions, pushing backlogs to their highest level since September 2023.

Firms increased inventories at the fastest pace in nearly three years, while business confidence rose to its highest level since August 2024.

Attribution: Amwal Al Ghad English