FX.co ★ Egypt Non-Oil Private Sector Downturn Eases In April

Egypt's non-oil private sector contraction softened in April, as output and new orders fell at slower rates amid easing inflationary pressures, survey data from S&P Global showed on Wednesday.

The Purchasing Managers' Index, or PMI, rose to 47.3 in April from 46.7 in March. However, any reading below 50 indicates contraction in the sector.

Due to a slower reduction in demand levels, the rate of decline in activity slowed to the weakest in six months, the survey said.

The output and new jobs in the manufacturing, wholesale and retail, and service sectors all decreased, but the construction sector saw an increase for the first time in ten months.

On the price front, input price inflation eased from multi-year highs seen towards the end of 2022. The slowdown in cost inflation was mainly attributed to improving global supply conditions and a more balanced exchange rate. As a result, output prices rose at the weakest rate since August last year.

The outlook was the most pessimistic in the survey's history due to persistent economic weakness, import restrictions, and high prices overall.