FX.co ★ Egypt Non-Oil Private Sector Contraction Deepens

The S&P Global Egypt PMI decreased to 48.8 in June 2025, down from May's three-month peak of 49.5, indicating an intensified contraction in the non-oil private sector, even though it was less severe than the historical average. This latest figure represents the fourth consecutive month of decline, primarily driven by accelerated decreases in both new orders and output. In reaction to these conditions, companies curtailed their purchasing activities for the fourth month in a row, with the rate of reduction being the most rapid observed in nearly a year. Additionally, total inventories reached a standstill in June. Employment levels dropped for the fifth straight month, albeit at the smallest rate of reduction in the current trend. On the prices front, input cost inflation lessened to its lowest rate in three months, while output cost inflation decelerated from May's seven-month peak. Looking forward, business sentiment fell to an unprecedented low, reflecting diminished expectations for new orders amidst concerns over geopolitical uncertainties.