Cityscape in Egypt

Egypt PMI February 2024

Egypt: Non-oil sector faces deterioration amid economic challenges

The S&P Global Egypt Purchasing Managers’ Index (PMI) fell to an 11-month low of 47.1 in February from 48.1 in January. As a result, the index moved further below the 50.0 no-change threshold—it has been in contractionary territory since December 2020—and signaled a faster deterioration in non-oil private sector operating conditions compared to the previous month.

February’s downturn was primarily due to new orders plunging at the quickest rate in nearly a year; high inflation weighed on demand, especially domestically. Consequently, output and employment also saw steeper declines, partly reflecting diminished activity and tourism due to Israel’s war on Hamas.

Regarding prices, input price inflation hit a 13-month high: The sharp decrease in Suez Canal freight volumes due to the Red Sea shipping crisis led to falling foreign currency inflows. These lower currency inflows exacerbated the ongoing foreign exchange crisis and led to higher import prices. Consequently, selling charges also rose steeply. Despite expectations for continued challenges in the year ahead, business confidence rose slightly from January.

David Owen, senior economist at S&P Global, commented on the outlook for operating conditions:

“Despite Egypt’s headline inflation rate dropping eight percentage points over the last four months, the latest results signal that it could reaccelerate in the near future, which looks likely to prolong the downturn and leave business confidence subdued. Indeed, firms’ expectations for the coming year remain mild, while faster cuts in employment and purchasing suggest they are planning for a prolonged reduction in output.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest