Egypt’s non-oil private sector had dwindled for the 35th consecutive month in October as inflation, supply chain problems as well as a lack of access to foreign currency keeps bite into business activity, according to a survey shown on Sunday, November 5.
The S&P Global Purchasing Managers’ Index (PMI) plummeted to 47.9 from 48.7 in September, falling further below the 50.0 threshold that sets apart growth from contraction.
An S&P Global economist, David Owen had said:
“The Egypt PMI had pointed to the steepest deterioration in non-oil business conditions for five months in October.”
A quicker decline in new business volumes and persistent weakness in output were recorded as supply shortages and inflation continued to bite, forcing companies to make their first reductions in staffing and stock levels since July.”
The subindex for new orders plummeting to 47.1 from 47.6, while the backlog index slipped to 50.6 from 53.1, which had been its highest reading since the PMI resumed in April 2012.
The output subindex on the other hand rose to 46.4 from 45.7 in September, while the subindex for future output expectations rose to 56.4, its largest in 10 months, from 53.0 recorded in September.
