Cairo – Mubasher: Egypt’s headline seasonally adjusted Purchasing Managers’ Index (PMI) edged up for the second month running in November to 49.2 from 49 in October 2024, according to the latest S&P Global PMI data.
The reading highlighted a further decline in operating conditions across the Egyptian non-oil sector during November, with output levels falling due to weaker order inflows.
Input prices grew at the slowest pace since July, despite some pressure on material costs from a stronger US dollar. Moreover, the output charges rose to a more modest degree.
Firms were less confident about future business activity, which contributed to a renewed drop in headcounts. New order volumes also decreased, following the trend since July.
Nonetheless, rates of contraction softened from October, as some companies reported a pick-up in new work amid some signs of recovery.
The data also reflected that the reduction in jobs was also the quickest since February. Lower staffing levels were mostly linked to firms not replacing voluntary leavers amid reduced sales volumes and weaker confidence.
David Owen, Senior Economist at S&P Global Market Intelligence, said: "Declines in output and new business slowed across the non-oil sector in November, indicating that business conditions are close to stabilising.”
“A slump in the wholesale and retail sector especially meant that the PMI data was indicative of a decline in overall operating conditions,” Owen stated.
He noted: "Reductions in purchasing activity and employment hint that firms are not expecting capacity levels to be challenged too much in the months ahead. Lower sentiment towards future activity also reflects a strong degree of uncertainty in the market.”
"The latest mark-up in the US dollar value underscored further pressure on purchasing prices in November. However, with wage pressures easing, the rates of input cost and output charge inflation dropped to four-month lows, suggesting downward potential to consumer price inflation in the coming months," the economist concluded.
