Egypt’s non-oil private sector slowdown softens in May: PMI
Updated 6/4/2024 7:55:00 AM
Arab Finance: Egypt’s purchasing managers’ index (PMI) surged to its highest level in nearly three years and was on the verge of entering growth territory in May, according to the S&P Global Egypt PMI survey posted on June 4th.
This came as May witnessed a significant decline in inflationary pressures since the beginning of 2024 stimulated a near-stabilization in demand conditions.
The headline seasonally adjusted S&P Global Egypt PMI rose to 49.6 in May from 47.4 in April, but was still below the 50-point threshold, the data revealed.
The report also showed that business activity signaled the lowest rate since July 2023.
“May's PMI reading of 49.6 was the first indication that the rapid cooling of price pressures is starting to boost the Egyptian non-oil private sector,” David Owen, Senior Economist at S&P Global Market Intelligence, commented.
Moreover, input costs rose at the slowest rate since March 2021, while purchase price inflation hit its lowest level in four years, as per the survey.
In addition, input cost inflation across the non-oil economy fell for the third month in a row last May, as improved currency availability maintained its positive impact.
The survey also showed that new business levels declined at the slowest pace since September 2021, whereas new export orders rose for the second time in three months due to increasing foreign demand.
The firms’ confidence over the 12-month outlook improved in May, with hopes that economic conditions will boost growth.
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