Arab Finance: Egypt's non-oil private business has seen a sharp decline in operating conditions last April due to persisting price pressures that weighed on both new orders and output, according to the latest S&P Global PMI data.

Hence, the headline S&P Global Egypt Purchasing Managers’ Index (PMI) fell to 46.6 in April 2026 from 48 last March, with input prices increasing at the fastest pace since January 2023. 

The reading showed a contraction in the health of the non-oil private sector, indicating a fall in the gross domestic product (GDP) growth to an annual rate of approximately 3.9%.

Non-oil firms curtailed their purchases of inputs and reduced their headcounts, as selling prices hiked to the sharpest uptick since August 2024.

David Owen, Senior Economist at S&P Global Market Intelligence, commented: "April PMI data indicated that activity slowed and price pressures quickened across the domestic non-oil sector, as the Middle East conflict continued to disrupt global supply chains and drive sharp increases in fuel and material prices for Egyptian companies.”

Owen added: “The rapid acceleration in price pressures faced by businesses suggested that the spike in headline inflation—which had reached 15.2% in March—may have further to run.”

For the third successive month, new business fell at an accelerating pace, with the latest drop the most pronounced since March 2023. Weak demand conditions were experienced across all monitored sectors, with the steepest downturns recorded in manufacturing and wholesale & retail.

The higher cost pressure was due to the war in the Middle East that drove up the prices of a range of inputs, most notably fuel.

Around 27% of surveyed businesses reported that their input prices had risen since March, resulting in the quickest rate of overall cost inflation in more than three years.

Non-oil companies showed optimism regarding year-ahead output, hoping that market conditions would recover and that disruption stemming from the Middle East conflict would ease.