Egypt: The non-oil private sector remains lackluster in November
The Emirates NBD Egypt Purchasing Managers’ Index (PMI) ticked up to 49.2 in November from 48.6 in October. The index was therefore still below the 50-threshold that separates contraction from expansion in the non-oil private sector for the third consecutive month.
The continued downturn in November was led by a decline in output and new orders, although both declines were moderated compared to those observed in October. Despite weak demand, capacity pressures built up in November as backlogs of work increased for the fifth month in a row. This was partly due to fewer employees on the payroll. The uptick in input prices, meanwhile, significantly slowed in November, with few firms pointing to higher costs. This resulted in only a slight increase in output charges for customers. Looking ahead, although business sentiment was positive in November, it fell to the lowest level since the PMI series began in April 2011.