Cairo - Mubasher: The headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) retreated to 45.2 in June from 47.0 in May, reflecting the weakest performance in the Egyptian non-oil private sector economy in two years.

This performance is driven by the plunge in demand across businesses amid the sharp rise in prices, a devalued pound, and material shortfalls, according to a press release on Wednesday.

The country recorded the quickest rise in input costs for almost four years, accelerating the rate of selling charge inflation.

Meanwhile, companies have cut their own activity and input purchases due to the slump in new businesses and commodity availability amid geopolitical headwinds.

Weaker sales were more prominently witnessed in the manufacturing and wholesale and retail sectors, while the construction sector saw more stable economic conditions.

The Economist at S&P Global Market Intelligence, David Owen, said: "Egyptian companies suffered from a sharp downturn in new business in June, leading to the strongest deterioration in economic conditions since COVID-19 measures were introduced in the second quarter of 2020."

Meanwhile, Owen added: "The sharp drop-off in demand came from rising inflation and tightening monetary policy, as the Central Bank's decision in May to devalue the pound against the US dollar, in response to interest rate rises by the Federal Reserve, added to the cost of importing goods."