Egypt’s PMI rises to 47.1 in May

CAIRO - 4 June 2026:  Egypt’s non-oil private sector showed a slight improvement in May, with the S&P Global Purchasing Managers’ Index rising to 47.1 from 46.6 in April 2026. However, the reading remained below the neutral 50.0 level for the fifth consecutive month, signaling continued contraction.

The PMI tracks the performance of the non-oil private sector through key indicators such as new orders, output, employment, supplier delivery times, and stocks of purchases. It is considered one of the main early indicators of business activity.

According to the report, operating conditions continued to weaken in May as new orders declined for the fifth month in a row, pressured by high inflation and weaker purchasing power.

Output also continued to fall, although at a slower pace than in April, helped by a relative improvement in the manufacturing and construction sectors. However, wholesale, retail, and services companies continued to face weak activity and stronger business pressures.

The report said around half of surveyed companies reported higher input cost pressures, driven by rising diesel and electricity prices, currency weakness, and higher wages, which reached their highest level since January 2018.

As a result, companies raised selling prices at a near-record pace to pass on part of the higher costs to consumers. They also reduced employment at the fastest rate since June 2020 in an effort to protect profit margins.

David Owen, Senior Economist at S&P Global, said companies took clear measures to respond to the sharp increase in cost pressures during May, adding that output price inflation reached the second-highest level in the survey’s history.

Despite the continued pressure, Owen noted that business confidence improved, although geopolitical tensions in the Middle East remain a risk that could weigh on GDP growth during the current quarter.