Declining Sales, Rising Costs Contribute to Drop in Egypt’s PMI for April

Egypt’s Purchasing Managers' Index (PMI) dropped from 49.2 in March to 48.5 in April 2025, marking its lowest level of the year, according to the latest report from S&P Global.

The data pointed to a slowdown in the non-oil private sector, driven largely by reduced demand among non-oil companies. The decline in consumer spending led to fewer new business opportunities, resulting in a decrease in production.

Input prices in the non-oil economy surged at their fastest rate in four months during April, reversing a trend of slowing inflation in March that had reached its lowest point in 58 months. However, average prices remained stable in April after a continuous 56-month inflation period.

The report highlighted that the increase in costs, particularly a 15% rise in fuel prices, contributed to declines in both purchasing activity and employment. Despite these challenges, companies managed to build inventories and reduce backlogs. However, business confidence remained subdued when compared to long-term trends.

David Owen, Senior Economist at S&P Global Market Intelligence, noted, “Business activity continued to decline for the second consecutive month in April, with companies reporting further impacts from weakening sales.”

Owen added, “Some businesses highlighted that softer global conditions had dampened business confidence and spending. The rising uncertainty in the global economy and shifting trade policies could further weaken demand in various markets.”