Egypt non-oil private sector shrinks in June due to weak demand

Firms also reported a sharp reduction in purchasing activity and a historic low in business confidence heading into the second half of the year.

According to its PMI report on Egypt, S&P Global noted that the country’s headline PMI fell to 48.8 in June, down from 49.5 in May, marking the fourth consecutive month below the neutral 50.0 threshold that separates expansion from contraction.

The reading signalled a modest but accelerated decline in overall operating conditions.

“The June PMI data pointed to another mild decline in the health of the non-oil sector, driven by sustained decreases in incoming new orders and output volumes,” said David Owen, senior economist at S&P Global Market Intelligence.

The contraction was driven by faster declines in both output and new orders, with businesses citing weak client spending and a general stagnation in local markets.

The downturn prompted firms to scale back input purchases at the fastest pace in nearly a year, particularly in the manufacturing sector.