FX.co ★ Egypt Non-Oil Private Sector Contracts Most in 4 Months

In April 2025, the S&P Global Egypt Purchasing Managers’ Index (PMI) dropped to 48.5 from 49.2 in March, indicating the most significant contraction in the non-oil private sector in four months. This downturn was attributed to faster declines in output and new orders amid decreasing domestic and international demand. Consequently, businesses reduced their purchasing and hiring activities for the third consecutive month, citing lower workloads and cost-cutting measures. Regarding pricing, although input costs rose sharply—primarily due to a 15% increase in fuel prices—selling prices remained stable, halting a 56-month period of inflation. Meanwhile, inventory levels experienced a rise, and backlogs saw a decline, with suppliers' delivery times remaining unchanged for the first time in three months. Additionally, firms highlighted currency volatility and elevated borrowing costs as additional pressures. Looking forward, business confidence reached its highest point in three months but remained below historical norms, as companies expressed hope for an improvement in market conditions and a reduction in economic uncertainty.