Egypt's Non-Oil Private Sector Economy Contracts in April
Egypt's non-oil private sector has experienced a new contraction, driven by a decline in both domestic and foreign demand, leading to a decrease in new orders and production for the second consecutive month, according to a survey published on Tuesday.
The S&P Global PMI index for Egypt dropped from 49.2 in March to 48.5 in April, reaching its lowest level since the beginning of 2025. A score below 50 indicates a contraction in activity, while a score above 50 indicates an expansion, reports Reuters.
David Owen, Chief Economist at S&P Global Market Intelligence, stated: "Economic activity has slowed down for the second consecutive month in April, with businesses signaling a further slowdown due to declining sales." He added that the weakness in international markets has weighed on business confidence and curbed spending.
Although input costs have increased, mainly due to a 15% increase in fuel prices, businesses have maintained their selling prices unchanged, ending 56 consecutive months of inflation. Employment and purchasing have also declined, with a reduction in workforce for the third consecutive month.
Input prices have recorded their highest increase in months, but output prices have remained stable, indicating moderate pressure on costs. Businesses are cautiously optimistic about the future, with confidence rising to a three-month high, although it remains below long-term averages.
Supply chains have remained stable, with no change in delivery times and a slight increase in inventory levels. The production index has dropped to 47.4 from 48.6, while the new orders index has fallen to 47.24 from 49.0.
