Egypt: PMI ticks up in May; conditions continue to deteriorate
The S&P Global Purchasing Managers’ Index—which measures business activity in the non-oil private sector—inched up to 47.0 in May from April’s 46.9. Consequently, the index moved closer to, but remained below, the 50.0 no-change threshold—where it has been mired for the past 18 months—signaling a continued deterioration in business conditions from the previous month.
This was partly due to the recent banning of imported products from some manufacturers, while the introduction of additional requirements for importers led to broader customs delays. These factors contributed to a lengthening of delivery times and supply shortages. Meanwhile, output and new orders both declined once again in May, partly due to elevated price pressures: Input cost inflation accelerated to a six-month high due to the fallout from the war in Ukraine, a strong U.S. dollar and the aforementioned supply shortages. Staffing levels decreased marginally in May, while sentiment dropped to the second-lowest value on record.