Egypt’s Non-Oil PMI Sees Slight Uptick in March
In March, Egypt’s non-oil economic sector observed a marginal improvement, according to the latest data from the S&P Global Egypt Non-oil Purchasing Managers’ Index (PMI). The PMI edged up to 47.6 from February’s 47.1, marking a continuous period below the critical 50.0 threshold that delineates expansion from contraction. This subdued increase indicates a gentler decline in the operating conditions of the non-oil private sector compared to the previous month.
The persistent downturn in activity was primarily attributed to frail order books, exacerbated by soaring inflation and a depreciating Egyptian pound that curtailed consumer spending. However, the decline was less severe than in February, buoyed by a rise in new export orders for the first time since December 2022, and a subsequent hiring surge, a first for the year.
Recent economic interventions aimed at addressing Egypt’s currency woes—specifically, raising interest rates and floating the Egyptian pound—have somewhat mitigated price pressures. Notably, both input and output price inflation descended to their lowest levels in three months, despite escalating material costs and the most significant wage increases since October 2020, driven by the ongoing cost-of-living crisis.
Nevertheless, business sentiment waned as firms expressed concerns about potential further adverse economic impacts on sales. Despite these apprehensions, companies remained hopeful about business prospects for the next 12 months.
Source: S&P Global Egypt Non-oil Purchasing Managers’ Index (PMI)
