Egypt: PMI steady in November; conditions continue to deteriorate
The IHS Markit Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—was unchanged at October’s 48.7 in November. Consequently, the index remained below the 50-threshold, where it has been for the past year, signaling a continued deterioration in business operating conditions from the previous month.
Both output and new orders dropped in November as demand eased, partly due to global supply chain bottlenecks. Moreover, mounting price pressures also weighed on domestic demand. More positively, export sales rose in November for the first time since August. Turning to prices, selling charges increased sharply due to firms trying to maintain their profit margins as higher raw material, fuel and shipping prices pushed production costs up. Moreover, employment levels fell for the first time since July in November. Lastly, firms’ sentiment deteriorated somewhat in November as higher inflation expectations dampened output expectations for the coming 12-month period.