Good afternoon, ladies and gentlemen, and happy hump day. We have finally reached the midpoint of this hot week but the news shows no sign of cooling.

THE BIG STORY TODAY

Latest PMI numbers show non-oil private sector nearing growth levels: Egypt’s non-oil private sector activity increased to its highest level in almost three years in May, with cooling inflation and rebounding demand pushing it to the verge of growth, the S&P Global’s Egypt Purchasing Managers’ Index (pdf) showed. Improved foreign currency availability post-float has spurred “greater price stability and stronger confidence” among firms, S&P Global Market Intelligence Economics Senior Economist David Owen said.

The headline PMI rose to its highest level since August 2021 at 49.6, up from 47.4 in April and just shy of the 50 threshold that separates growth from contraction. The survey also showed business activity decreasing at its slowest rate since July 2023, with activity in services and construction registering an uptick. Confidence in the economy’s 12-month outlook improved, alongside employment levels.

Not all roses: While growth in services and construction augurs well for the economy as a whole, “ongoing downturns in industries such as manufacturing and wholesale & retail show that the recovery is still lopsided and may take more time to spread across the economy,” said Owen. Salaries also increased at one of the fastest rates in the previous three years, likely in response to cost-of-living pressures.

THE BIG STORY ABROAD

India is dominating international headlines today as its elections come to a close. Despite a landslide victory being projected in Prime Minister Narendra Modi’s favor, early results are showing narrower outcomes. While the PM is set to keep his role in office, his government may lose its decade-long grip on voter majority. As the forecasted results slipped with Rahul Gandhi’s centrist party leading congress seats, so did Indian equities, with the biggest loss in four years being reported. (NYT | Reuters | Bloomberg | CNBC | CNN)

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • El Sisi calls for new government to help take Egypt to the “next phase”: President Abdel Fattah El Sisi instructed Prime Minister Moustafa Madbouly to form a new government yesterday after Madbouly submitted his government’s resignation.
  • MPs pass next year’s budget: The House of Representatives yesterday gave its seal of approval to the FY 2024-2025 state budget and socioeconomic development plan.
  • Auto sales rebound after reaching multi-year low: Auto sales in April rose 35.1% m-o-m to reach 5.7k vehicles

☀️ TOMORROW’S WEATHER- It’s getting even hotter with the mercury reaching a high 40°C and dipping to a low of 27°C in the evening, according to our favorite weather app.

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