Riyadh: Egypt's non-oil private sector contracted for the fourth consecutive month in June, with the Purchasing Managers' Index (PMI) dropping to 48.8 from 49.5 in May. This decline indicates a continued deterioration in operating conditions and signals regional and economic pressures impacting tourism, remittance flows, and Suez Canal revenues.

Intermittent disruptions in Israeli gas exports have raised concerns over energy reliability, while elevated freight rates have inflated import costs.

The survey reflects subdued hopes for future activity due to weaker order books and concerns over geopolitical risks.

Businesses reported reduced output and stagnating local markets contributing to the drop in new orders.

The manufacturing sector experienced the largest cutbacks among surveyed industries.

Reduced buying levels led to a halt in inventory growth, which had risen slightly in previous months.

Supply chain strains resulted in a slight lengthening of supplier delivery times.

Employment levels continued to weaken but at a slower rate than previous months due to diminished demand and pessimism about future activity.

Although price pressures eased, the overall deterioration in confidence was not offset.

The S&P Egypt PMI is derived from survey responses from around 400 private sector firms and measures non-oil business conditions.

Readings above 50 signal improvement, while those below 50 indicate deterioration.