07 Jul 2022
S&P Global reported PMI data for June 2022, showing that Egypt’s PMI dropped to 45.2 from 47.0 in May 2022. The survey reported a considerable decline in new business, mainly due to rising inflation and tighter monetary policy. The CBE’s (Central Bank of Egypt) recent devaluation of the Egyptian Pound made matters more challenging for businesses as it raised the cost of importing goods. There were also difficulties reported with securing raw materials, and with a sizeable drop in output, meant that businesses considerably decreased their purchases.
With hopes dashed for an imminent recovery in demand, businesses raised their selling prices significantly in order to pass on to customers a bigger proportion of their increasing costs than they did before. Despite the contracting business activity, the sentiment reported by businesses was at a five-month high, with managers hopeful that a recovery in business activity will occur within the coming twelve months. (Sources: S&P Global (English) (Arabic), Nasdaq (English), Mubasher (English), Zawya (English) (Arabic), al-Ahram (English), Egypt Today (English), Sada el-Balad (English), The National (English), Gulf News (English), al-Maal, Amwal al-Ghad, Hapi Journal, Masrawy, al-Arabiya, al-Sharq al-Awsat, Sky News Arabia)