Cairo – Mubasher: Egypt’s headline seasonally adjusted Purchasing Managers’ Index (PMI) increased to 49.5 in May 2025 from 48.5 last April, according to the latest S&P Global PMI data.
The reading, which was below the 50 no-change mark and above its long-run series average of 48.2, reflected a deterioration in operating conditions for the third consecutive month.
Non-oil private sector economy stabilized in May, as the index highlighted softer contractions in new orders and output.
Overall operating conditions declined at the slowest pace in three months, with fewer companies reporting a plunge in customer sales.
However, firms cut their purchasing activity at the quickest rate since October 2024, while the total employment fell for the fourth successive month.
May’s survey also highlighted a surge in cost pressures due to rising supplier charges and unstable exchange rates, especially with the US dollar.
The rate of input price inflation was the fastest observed so far in 2025, which led selling prices to jump to the greatest extent for seven months in May. Meanwhile, wage expenses rose only slightly.
Although non-oil businesses in Egypt were slightly more upbeat when compared to April, the level of confidence remained weak by historical standards.
Some companies elaborated that stubborn price pressures and low demand had weighed on output expectations.
David Owen, Senior Economist at S&P Global Market Intelligence, said: "Although many of the key PMI metrics continued to indicate a deterioration in business conditions in May, the overall pace of decline was not as sharp as in April and softer than the survey's historical trend.”
“Output and new orders fell at the slowest rates for three months, helped by renewed growth in the manufacturing sector,” Owen added.
He noted: “Nevertheless, a number of surveyed firms continued to report softness in market demand, leading them to cut back on purchases and staffing.
“Uncertainty in currency markets and concerns towards future global trade conditions amid US tariffs were noted as factors behind higher supplier prices,” the economist indicated.
