Egypt: PMI drops slightly in November
December 3, 2020
Egypt’s Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—decreased to 50.9 in November from the over five-year high of 51.4 in October. The figure marked the third consecutive expansionary reading, with readings above 50 indicating an overall increase in operating conditions compared to the previous month.
The fall in the PMI was predominantly driven by slower growth in output and new orders. Furthermore, firms cut employment levels fell for the 13th straight month, although the pace of the decline was the slowest in that period. On the price front, input costs rose at a milder pace than in October, with output prices ticking up modestly as a response.
Regarding this month’s print, David Owen, economist at IHS Markit, commented:
“Firms were constrained by a slower increase in export sales, particularly as many countries in Europe tightened lockdown measures to curb a second wave of the virus. […] Egyptian firms were also the least optimistic about future output in the series history, amid concerns that activity could weaken if Covid-19 cases rise again domestically.”
Author: Stephen Vogado, Economist