Egypt’s non-oil private sector contracts in July ’25 – PMI

Egypt’s non-oil private sector continued to contract in July, though at a softer pace than in June, as the headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) rose to 49.5, up from 48.8.

While this remained below the neutral 50.0 threshold for the fifth consecutive month, it marked one of the highest readings in this period, signaling only a marginal deterioration in operating conditions.

Output and new orders both declined again, albeit at slower rates, with several firms citing subdued client demand. Nonetheless, pockets of recovery — particularly in the services sector — were reported. The wholesale and retail sector was highlighted as the biggest drag on both demand and activity.

In a notable shift, employment rose for the first time since October 2024, albeit marginally, as firms hired staff to handle workloads amid a slight rise in backlogs of work — the first since March. Purchasing activity continued to decline, though more mildly than June’s 11-month record.

Input price inflation quickened slightly, driven by higher costs for cement, fuel, packaging, and staff wages, yet remained well below long-run averages. Selling charges increased for the third consecutive month.

Despite these tentative improvements, business confidence stayed historically weak, weighed down by ongoing concerns over client demand and economic uncertainty.

Attribution: Amwal Al Ghad English

Subediting: M.S.Salama