Egypt’s PMI edges up to 49.5 in July, still below growth threshold
Updated 8/5/2025 7:57:00 AM
Arab Finance: Egypt’s headline seasonally adjusted Purchasing Managers’ Index (PMI) reflected a marginal decline in the health of the non-oil private sector economy during July 2025, the latest S&P Global PMI data showed.
The reading increased to 49.5 in July from 48.8 in June 2025, remaining below the 50.0 no-change threshold for the fifth consecutive month.
Egyptian non-oil business experienced a less pronounced contraction in July, as firms reported a slight drop in both activity and new orders due to weak client demand.
However, the report highlighted signs of recovery in demand that emerged in parts of the economy, particularly in services, where the overall reduction in activity was only mild.
In response to higher prices and lower client spending, the new business volumes retreated for the fifth month in a row during July. Nonetheless, the downturn in sales softened amid some mentions from panelists of increased new work.
The data showed that the wholesale and retail segment was the largest drag on both demand and activity in July.
Regarding employment, businesses expanded their staff in July, marking the first uptick since October 2024, while cuts in purchasing softened.
Job creation was backed by a slightly improved demand picture and associated pressure on business capacity, with the survey noting a rise in outstanding business for the first time since March.
Meanwhile, the firms continued to cut their purchases of inputs, but the pace of decline was less pronounced than June’s 11-month record.
They maintained stocks of purchases at the same level as the month before, as supply chain conditions remained relatively stable.
Input price pressures rose last month, with firms highlighting surging prices for a few key items such as cement, fuel and packaging. However, it remained significantly lower than the long-term trend.
Business confidence slightly enhanced when compared to June’s record, as companies continued to express concerns about demand strength and broader economic uncertainty.
David Owen, Senior Economist at S&P Global Market Intelligence, said: “Although the Egypt PMI stayed below 50.0 in July, indicating a worsening of non-oil business conditions, the latest survey data provided some cause for optimism.”
“Several firms reported the securing of new work, which helped to soften the rate of decline in sales. Businesses also had the confidence to hire new staff, leading to an increase in employment for the first time in nine months, if only a fractional one,” Owen added.
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