Egypt’s PMI holds steady in October

Here are the stories driving the day, both at home and abroad. Egypt’s non-oil Purchasing Managers’ Index (PMI) held steady in October at 47.2, but the headline figure masks a dim picture heading into 4Q as new orders fell at their fastest rates in four months and cost pressures picked up, according to S&P Global’s latest PMI report (pdf). The reading — the 10th straight month below the 50.0 break-even mark — was unchanged from September’s and sits below the long-run average of 48.2.

Longer delivery times and stock-building partly propped up the headline. The PMI counts longer supplier delivery times and bigger input stocks as positives, since both typically signal strong demand. In October, both sub-indices “reflected supply disruption and inflation concerns rather than stronger demand,” S&P Global Market Intelligence Principal Economist David Owen noted. October saw the most stretched delivery times in five months on maritime disruptions, material shortages, and slower customs procedures, while stocks of purchases picked up for the first time since June as firms sought buffers against anticipated inflation.

The government has asked its foreign suppliers to deliver about 10 LNG cargoes in November, down from 12 in October, and deferred five of the 15 it had contracted into 2027, Asharq Business reports, citing an unnamed government official. The reason is the price: a single cargo now tops USD 100 mn, double September’s level, putting November’s LNG import allocation at about USD 1 bn.

^^We’ll have more on these stories in tomorrow’s edition of EnterpriseAM.

☀️ TOMORROW’S WEATHER- We’re back to warmer weather territory in Cairo tomorrow, with temperatures set to peak at 32°C before dropping to an overnight low of 19°C, according to our favorite weather app.

MAKING HEADLINES ABROAD-

Leading the digital front pages this afternoon is news of a US strike on Iran’s Qeshm Island in the Strait of Hormuz ahead of today’s pivotal US midterm elections. Washington described the strikes as limited and defensive, in response to Iran’s Islamic Revolutionary Guard Corps firing at a US aircraft. US officials said the strikes do not signal a return to major US combat operations, and this wasn’t the first time the US targeted the island during the war. A peace agreement still seems out of reach, however, despite diplomatic efforts to avoid major conflict after the midterm elections.

ICYMI- As Americans head to the polls today, US President Donald Trump and the Republican Party may be paying a political price for continuing the war, with the president’s approval ratings continuing to slide. Republicans currently hold majorities in both chambers of Congress, but polling points to a possible Democratic takeover of the House. The Justice Department this morning deployed around 1k election monitors across the country’s 50 states, its largest monitoring move in history.