The S&P Global Egypt Purchasing Managers’ Index (PMI) edged up to 46.9 points last April from 46.5 points in March, as inflation continues to affect the country’s non-oil activities.
The reading still records under the 50 threshold limit, marking the second-fastest decline in business conditions since June 2020, according to a press release on Sunday.
Meanwhile, the private sector witnessed a notable decrease in business activity due to lower client demand and higher input costs.
Accordingly, the new business dropped in April for the eighth consecutive month due to the weak domestic demand and the plunge in new export sales.
Egypt also registered the quickest drop in employment levels in one year.
David Owen, an Economist at S&P Global, said: “Non-oil business activity in Egypt continued to fall sharply in April as businesses faced a further increase in material and energy costs due to the war in Ukraine and a devaluation of the pound in late-March.”
Owen added: “Manufacturers remained the most exposed to these setbacks, with increased raw material prices and supply shortfalls leading to a solid cut in goods production, although wholesale and retail and services also saw a drop in activity..”
