Egypt: Private-sector PMI improves in May but remains in contractionary terrain
The S&P Global Purchasing Managers’ Index (PMI) rose to 47.8 in May from April’s 47.3. May’s result marked the strongest reading since February 2022. However, the index remained below the 50.0 no-change threshold, signaling a continued—albeit softer—deterioration in private-sector operating conditions from the previous month.
May’s reading was driven by softer falls in output, exports and new orders, while price pressures also ebbed from the highs seen at the turn of the year thanks to the steadier exchange rate. While business sentiment improved, it was still weak by historical standards, due to concerns over demand conditions, inflationary pressures and supply-side challenges.
David Owen, senior economist at S&P Global Market Intelligence, said:
“Positivity in the services economy – where new business intakes rose for the second time in three months – suggests that demand could make further strides towards a recovery in the coming months. Nevertheless, confidence levels remain broadly subdued, with just 6% of respondents expect a rise in activity over the next 12 months.”