The seasonally adjusted headline PMI increased to 49.5, up from 48.8 in June, signaling a softer contraction in business activity and marking the highest reading since February.
Egypt’s non-oil private sector exhibited early indications of stabilization in July, as reflected by the latest S&P Global Purchasing Managers’ Index (PMI) report released on Tuesday.
The seasonally adjusted headline PMI increased to 49.5, up from 48.8 in June, signaling a softer contraction in business activity and marking the highest reading since February.
Although the index remained below the neutral 50 mark—indicating a continued downturn for the fifth consecutive month—the slower pace of decline suggests the sector may be approaching a turning point.
Notably, employment levels rose for the first time in nine months, with firms expanding their workforce amid growing confidence in future demand.
The uptick in staffing was accompanied by a slight increase in backlogged work, representing the first rise in outstanding orders since March.
Meanwhile, input cost inflation edged up due to higher prices for cement, fuel, packaging, and wages.
However, overall cost pressures remained significantly below historical averages, indicating a stable pricing environment.
Selling prices increased for the third consecutive month, but the gains were marginal, suggesting that companies are cautiously managing price hikes to avoid fueling consumer inflation.
