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Egypt’s March PMI: economic contraction eases

March sees a subtle rise to 47.6 in PMI, signaling ongoing challenges

What:

March 2024’s Purchasing Managers’ Index (PMI) in Egypt, reported by S&P Global, nudged up to 47.6 from 47.1 in February. Though still below the 50 mark, which divides contraction from growth, this uptick suggests a slight reduction in economic downturn pressures.

PMI 101:

PMI is like the economy’s pulse, gauging the business environment’s health within the non-oil sectors. Scores above 50 mean growth; below 50, contraction.

Bright Spots:

Despite reduced business activity due to currency fluctuations, inflation’s sting has lessened, thanks to recent economic interventions by the Central Bank of Egypt (CBE). An emergency rate hike and a shift to a more flexible EGP rate were introduced on March 6. According to S&P Global’s report, these measures seem to be making an impact, as March’s PMI indicates a three-month low in the rate of cost and price increases.