Egypt’s non-oil private sector weakened slightly in October in October.
The Emirates NBD Purchasing Managers’ Index (PMI) for Egypt fell slightly to 48.6 in October, compared to 48.7 in September.
The sector’s downturn has weighed on new orders during October, and foreign demand also fell slightly, according to a recent survey sponsored by Emirates NBD and produced by IHS Markit.
Data suggests that private sector firms remain under pressure as Egypt’s IMF-sponsored economic reform program continues.
This is the second consecutive month of contraction for the index after having enjoyed a brief period in expansionary 50-plus territory in July and August.
Involved companies reported a shortage of demand from the market.
Meanwhile, business activity slashed at Egypt’s non-oil private companies as output retreated for the second consecutive month due to a lack in market demand, the survey said.
Employment fell in October, signaling the fastest rate of job shedding since March as numerous employees leaving for new positions while work backlogs marked a four-month high in October, even the growth was marginal, the survey added.
In terms of prices, output charges at firms rose in October at the weakest rate in 10 months due to “a softer rate of input price inflation” as well as an increase in raw material costs, gasoline prices, and staff wages, it said.
“Egyptian non-oil private sector firms remained confident that output would rise over the coming year. Almost one-third of businesses expected activity to expand, with some forecasting increases in contracts and investment over the next 12 months,” the survey concluded.
On the other hand, Egypt’s foreign reserves increased by $40 million by the end of October 2018 to reach $44.501 billion, compared to $44.459 billion by the end of September 2018, according to the Central Bank of Egypt (CBE).
