Egypt’s non-oil private sector recorded a marginal increase in growth in July, with the headline Purchasing Managers’ Index (PMI) reaching 49.2, up slightly from 49.1 in the previous month, according to the S&P Global Egypt PMI report released on Thursday.
The PMI figure of 50 serves as the threshold between growth and contraction, and the sector has been experiencing contraction for 32 consecutive months. However, July’s contraction was the slowest since August 2021, indicating a modest improvement.
The report highlighted that companies reported the slowest increase in charges since April 2022. Despite this, the depreciation of the Egyptian pound against the dollar resulted in a continued sharp rise in purchase prices.
The overall outlook for improvement in the sector remained weak, as expectations for growth in the coming months remained subdued. The report suggests that economic challenges persist for the non-oil private sector in Egypt, and concerted efforts may be required to stimulate sustained growth in the future.
