FX.co ★ Egypt Non-Oil Private Sector Downturn Softens

The S&P Global Egypt Purchasing Managers' Index (PMI) increased to 49.5 in May 2025, up from 48.5 in April. This indicates a less severe decline in non-oil private sector conditions, and it represents the slowest rate of contraction in the past three months. This improvement was attributed to a less pronounced decline in both output and new orders, as fewer companies experienced decreased customer demand. Nevertheless, purchasing activity fell at its sharpest rate since October 2024, and employment saw a decline for the fourth consecutive month as businesses opted not to replace departing employees. Cost pressures became more acute, with input prices climbing at the fastest rate this year, driven by higher charges from suppliers, fluctuations in exchange rates, and increased costs of essential inputs such as fuel and cement. Consequently, selling prices rose for the first time in two months, reaching a peak not seen in seven months. Despite these hurdles, business confidence showed a slight improvement compared to April, though it remained subdued when compared to historical averages.