Egypt: The non-oil private sector remains lackluster in October
November 5, 2018
The Emirates NBD Egypt Purchasing Managers’ Index (PMI) ticked down to 48.6 in October, compared to 48.7 in September. The index therefore remained below the 50-threshold that separates expansion from contraction in the non-oil private sector for the second consecutive month.
The downturn in October was driven by a decline in new orders, although the decline was less pronounced than in September. In addition, a reduction in output weighed on the PMI reading. Employment levels took a hit in October, with the rate of job shedding at the fastest since March, and backlogs of work accumulated for the fourth consecutive month, although only at a marginal rate.
In terms of prices, output charges rose at the weakest pace in 10 months in October. This was linked to lower input price inflation. Meanwhile, businesses ramped up purchasing activity in October and supplier delivery times quickened, causing inventories to accumulate. Looking ahead, firms remained confident that output would rise in the coming months.
Author: Edward Gardner, Economist