Egypt PMI edges up in April, construction sector booms

Egypt PMI edges up in April, construction sector booms

Riyadh: Egypt’s Purchasing Managers Index edged up to 46.9 in April from March’s 46.5 points, still well below the neutral threshold of 50 points, according to S&P Global. The figure signaled the second fastest deterioration in business conditions since June 2020 driven by an increase in material and energy costs. The war in Ukraine and a devaluation of the Egyptian pound in late March contributed to those cost pressures, the report said. Prices increased slightly during April mainly because firms absorbed the costs and did not pass them down to consumers. The North African country’s non-oil businesses reported a decline in new orders during April as client demand decreased due to the rising cost of living, pressuring firms to limit their spending on materials and labor. As a result, a reduction in average stock levels was reported, together with the quickest drop in employment levels seen in a year. The manufacturing sector was hit the hardest as increased raw material prices led to a significant cut in goods production. Wholesale, retail as well as services also saw a drop in activity. Construction was the only exception as activities in the sector increased for the first time in 2022, the report