Egypt’s PMI hits 33-month high

Egypt’s PMI surged to a 33-month peak in May, nearing growth territory due to reduced inflation pressures and stabilised demand, as per data released on Wednesday.

According to the report, the country’s business activity declined at its slowest rate since July, with increased hiring reflecting growing sales confidence.

Inflation eased further, with input costs rising at the slowest pace since March 2021, attributed to improved currency availability and lower exchange rates. Purchase price inflation hit a four-year low, while wage costs rose, resulting in slight price increases.

The PMI, measuring non-oil private sector conditions, rose to 49.6, the highest since August 2021, indicating a marginal operating decline. Stability was attributed to reduced inflation.

Furthermore, new business levels fell moderately, yet export orders rose amid increased foreign demand. Confidence in economic conditions improved, leading to increased staffing and slower input purchase declines.

Input cost inflation decreased for the third consecutive month, driven by improved currency availability and lower US dollar exchange rates, reducing imported goods prices. Despite wage inflation, cost burden rises slowed, allowing for mild price increases.