Egypt's non-oil private business records marginal decline in July
Updated 8/5/2024 7:57:00 AM
Arab Finance: Egypt’s non-oil private sector businesses signaled a modest downturn in business conditions in July, with marginal decline in new business and output, according to the S&P Global Egypt Purchasing Managers’ Index™ (PMI) survey released on August 5th.
The headline seasonally adjusted S&P Global Egypt PMI recorded its second-highest reading in almost three years in July at 49.7, following the recent increase of 49.9 in June, the data showed.
The report revealed that the decline in sales prompted firms to cut down purchases after June’s first demand and buying activity uptick since 2021.
In addition, price pressures remained subdued compared to the past couple of years, although there were indications of intensification as input costs increased at the most rapid rate since March.
The survey also showed a slight downswing in new orders following a brief period of growth in June, while new export orders recorded an increase for the third consecutive month, fueled by improved demand from international markets.
“While some firms pointed to a turning of the tide in economic conditions, particularly through rising export demand, market conditions were stated as weak elsewhere,” David Owen, Senior Economist at S&P Global Market Intelligence, stated.
According to the report, business expectations improved, as non-oil companies predict an expansion in activity over the coming 12 months, yet optimism remained at a subdued level.
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