08 May 2022

S&P Global’s PMI (Purchasing Managers’ Index) for April 2022 registered 46.9, a modest increase from 46.5 in March 2022. The figure is still below the 50.0 neutral threshold, signalling continued business activity contraction. Companies were facing more increases in the prices of raw materials and energy due to the Russia-Ukraine conflict. The devaluation of the Egyptian Pound in late March 2022 added to these cost pressures. Customers also continued to ration their spending, leading to a reduction in new orders as well as lower employment levels. Positive PMI data appeared for the construction sector, which showed an increase in new work. On the other hand, manufacturers were the hardest hit by the input price increases and supply chain disruptions, which led to lower production. Retailers and wholesalers also witnessed declining activity. As the Russia-Ukraine conflict drags on, price and supply issues are expected to persist, leading to a negative outlook for business activity. Companies are not passing on the cost increases to customers yet as they await demand to recover. (Source: S&P Global (English), Reuters (English), Mubasher (English), Amwal al-Ghad (English) (Arabic), al-Ahram (English), Egypt Today (English), Daily News Egypt (English), Arab News (English), al-Maal, Hapi Journal, Economy Plus Me, al-Masry al-Youm, al-Sharq Business, CNBC Arabia, al-Arabiya, al-Sharq al-Awsat)