The Clap:
According to the most recent S&P Global Egypt PMI survey, there was a significant rise in sales volumes for Egyptian non-oil companies in June, marking the first growth seen since August 2021. The S&P Global Egypt Purchasing Managers’ Index (PMI) increased slightly from 49.6 in May to 49.9 in June, staying close to the 50.0 threshold for growth.
Growth drivers:
The progress comes after recent indications of economic stabilization, backed by policy changes focused on reducing price pressures and improving demand outlooks.
Notable changes:
- New orders increased for the first time since December 2021, mainly in the manufacturing and service industries, while construction as well as wholesale and retail sectors reported falls.
- Even though input costs rose slightly to a three-month peak last month, this did not prevent a small increase in selling prices.
- Improvements in both domestic and international markets led to a rise in new export orders, the highest seen in two-and-a-half years.
Business optimism dropped to a record low though:
Confidence in future business activity saw a downtick in June, recording its lowest level ever due to unpredictable financial conditions. As a result, several companies reduced their staff and reported non-replacement of leavers.
