Egypt's non-oil private sector contracts for third consecutive month in April

Egypt's non-oil private sector experienced a continued contraction in economic activity in April, marking the third consecutive month of decline. The S&P Global Purchasing Managers' Index PMI dropped to 46.6 in April from 48.0 in March, indicating the sharpest contraction since January 2023. A PMI reading below 50 signifies a downturn in activity. This decline was primarily attributed to rising operating costs, persistent global supply chain disruptions, and reduced demand both domestically and internationally. David Owen, Senior Economist at S&P Global, noted a significant slowdown in domestic economic activity and intensified price pressures on Egyptian businesses. Output fell for the third month in a row, recording its fastest decline since January 2023, driven by weaker new orders, input shortages, and increasing costs. New export orders also saw their steepest drop since the first half of 2020. Input costs rose at their fastest pace since January 2023, leading firms to increase selling prices at the quickest rate since August 2024 to counteract higher expenses for fuel, imports, and raw materials.