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

In July 2025, the S&P Global Egypt PMI increased to 49.5 from 48.8 in June, signaling a milder contraction within the non-oil private sector and matching the highest reading in the past five months. Despite continued declines in both output and new orders, the rates of decrease were less severe, with some businesses experiencing enhanced demand, notably within the services industry. Consequently, employment saw an uptick for the first time since October, driven by a rise in backlog work. Meanwhile, purchasing activities continued to fall, but the reduction rate decelerated, and inventory levels remained largely stable due to steady supply chain conditions. Input prices experienced a slightly faster increase, fueled by rising costs for fuel, cement, packaging, and wages, although inflation rates stayed below the long-term average. For the third consecutive month, selling prices increased, albeit modestly. Looking forward, sentiment continued to be subdued amidst ongoing economic uncertainty, though there was a slight increase in optimism compared to the record low in June.