Egypt Non-Oil Private Sector Activity Lowest Since 2023

2026-07-07 04:27 By Mariene Camarillo 1 min. read

The S&P Global Egypt PMI fell to 46.0 in June 2026 from 47.1 in May, signaling the sharpest contraction in the non-oil private sector in nearly three and a half years.

Business conditions weakened as new orders fell at the fastest pace since November 2022, pressured by weak liquidity, supply disruptions, raw material shortages, and the Middle East conflict.

Output, purchasing activity, and employment all contracted, although job losses eased slightly from May.

Supply chain pressures remained elevated, with delivery times lengthening further due to shipping disruptions in the Strait of Hormuz, raw material shortages, and higher fuel costs.

Meanwhile, input cost and output price inflation moderated from May's near-record highs, though fuel, raw material, and wage pressures remained significant.

Looking ahead, business confidence stayed positive despite easing slightly from May, supported by expectations of reduced geopolitical disruptions and stronger government support.



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Egypt Non-Oil Private Sector Activity Lowest Since 2023
The S&P Global Egypt PMI fell to 46.0 in June 2026 from 47.1 in May, signaling the sharpest contraction in the non-oil private sector in nearly three and a half years. Business conditions weakened as new orders fell at the fastest pace since November 2022, pressured by weak liquidity, supply disruptions, raw material shortages, and the Middle East conflict. Output, purchasing activity, and employment all contracted, although job losses eased slightly from May. Supply chain pressures remained elevated, with delivery times lengthening further due to shipping disruptions in the Strait of Hormuz, raw material shortages, and higher fuel costs. Meanwhile, input cost and output price inflation moderated from May's near-record highs, though fuel, raw material, and wage pressures remained significant. Looking ahead, business confidence stayed positive despite easing slightly from May, supported by expectations of reduced geopolitical disruptions and stronger government support.
2026-07-07
Egypt Non-Oil Private Sector Contraction Eases
The S&P Global Egypt PMI rose to 47.1 in May 2026 from 46.6 in April, signalling a slower deterioration in non-oil private sector conditions. Manufacturing and construction returned to growth, while inventories rose at the fastest pace in nearly three years. Despite these improvements, inflationary pressures intensified, with input costs rising at the fastest pace since January 2023 due to higher fuel and electricity prices, currency weakness, and stronger wage pressures. Supply chain conditions also worsened, with delivery times lengthening at the fastest pace in nearly four years amid shipping disruptions and Middle East tensions. Firms responded by cutting jobs at the fastest rate since June 2020 as weak demand and rising costs weighed on activity. Looking ahead, business confidence improved to its highest level since August 2024 on hopes of improved economic conditions and exchange rate stability, despite persistent inflation concerns.
2026-06-03
Egypt Non-Oil Private Sector Activity Hit 3-Year Low
The S&P Global Egypt PMI fell to 46.6 in April 2026 from 48.0 in March, marking a sharper deterioration in non-oil private sector conditions and the steepest rate of contraction since January 2023. Both output and new orders declined significantly amid persistent cost pressures and softer demand. Input costs rose at the fastest pace since January 2023, driven by higher fuel and material prices linked to Middle East tensions. In response, firms cut purchasing and reduced headcount to contain costs. Order books contracted sharply, pulling down output, while weak demand was broad-based, especially in manufacturing and wholesale & retail. On the cost front, selling prices rose at the strongest pace since August 2024 as firms passed on higher costs despite weak demand. Meanwhile, purchasing activity fell and input orders were reduced, reflecting softer sales and tighter operating conditions. Looking ahead, business confidence remained subdued regarding year-ahead output.
2026-05-05