Egypt: PMI rises marginally in December
The S&P Global Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, ticked up to 48.5 in December from November’s 48.4. As such, the index moved closer to, but remained below, the 50.0 no-change threshold—where it has been since December 2020. This signals a softer deterioration in non-oil private-sector operating conditions from the previous month.
December’s marginal improvement came on the back of higher employment, as firms onboarded staff for the first time since September. Less positively, new orders declined at the steepest pace since May due to a weak Egyptian pound and high inflation. Consequently, output fell in the month at a quicker pace than in October.
Turning to prices, input inflation slowed somewhat from the prior month but remained elevated in no small part due to currency weakness. Similarly, output charges rose at a slower rate than in October in a bid to support sales. Lastly, firms’ sentiment regarding output expectations for the year ahead improved to the second-strongest level in 2023.