The S&P Global Egypt PMI rose to 47.1 in May 2026 from 46.6 in April, indicating a slower deterioration in non-oil private sector conditions. Manufacturing and construction returned to growth, and inventories increased at the fastest rate in nearly three years. However, inflationary pressures intensified: input costs climbed at the sharpest pace since January 2023, driven by higher fuel and electricity prices, currency depreciation, and stronger wage growth.
Supply chain conditions also worsened, with delivery times lengthening at the quickest rate in almost four years amid shipping disruptions and heightened tensions in the Middle East. In response, firms cut jobs at the fastest pace since June 2020, as subdued demand and escalating costs weighed on activity.
Looking ahead, business confidence strengthened to its highest level since August 2024, supported by expectations of better economic conditions and a more stable exchange rate, even as concerns over persistent inflation remain.
