Egypt: PMI slides deeper into negative territory in January
The S&P Global Egypt Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, fell to 48.1 in January from 48.5 in December. As a result, the index moved further below the 50.0 no-change threshold—where it has been since December 2020—signaling a faster deterioration in non-oil private-sector operating conditions compared to the previous month.
January’s downturn chiefly reflected a significant drop in new orders—the sharpest in eight months—and output, as rising inflationary pressures dampened client demand. Moreover, geopolitical tensions and regional instability have hurt tourism activity. Meanwhile, employment was largely unchanged from the prior month.
Turning to prices, input and output inflation both accelerated to one-year highs, driven by higher prices for fuel and iron amid a weak Egyptian pound and ongoing import issues. Lastly, business expectations weakened to one of the lowest values in the series’ history.