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

The S&P Global Egypt PMI rose to 46.8 in July 2026 from 46.0 in June, indicating a slower yet still pronounced contraction in the non-oil private sector. New orders declined for the seventh consecutive month, reflecting subdued demand, elevated prices, shipping delays, and a reduction in new project starts, though this translated into a milder drop in output. Employment continued to shrink, while backlogs accumulated at the second-fastest pace in nearly three years. Purchasing activity fell at its steepest rate since September 2023, resulting in the first decrease in input inventories in five months. In contrast, supply chain conditions improved for the first time since March, with shorter delivery times amid easing disruptions in the Middle East. Input cost inflation cooled to a six-month low, and output price inflation slowed to a four-month low. Looking ahead, business confidence climbed to its highest level since June 2022, although optimism remains closely linked to the regional geopolitical backdrop.