Egypt's non-oil private sector activity contracts for 3rd consecutive month in November
Updated 12/3/2024 8:11:00 AM
Arab Finance: The Egyptian non-oil private sector faced continued challenges in November, marking the third straight month of contraction, according to the latest S&P Global Egypt Purchasing Managers’ Index™ (PMI) report.
The PMI, which tracks business conditions across key metrics such as new orders, output, employment, and supplier delivery times, rose slightly to 49.2 in November from October’s 49.0.
While this indicates a marginal easing in the downturn, the sector remains below the critical 50.0 threshold that separates growth from contraction.
The decline in activity was primarily attributed to ongoing weak customer demand, which led to reduced new order volumes, a trend that has persisted since July.
Despite this, some firms experienced a modest recovery in demand, contributing to a slight softening in the pace of contraction.
Manufacturing showed some resilience, with a modest uptick in goods orders driving a slight increase in output.
However, other sectors, including construction, wholesale and retail, and services, continued to see declines.
Employment levels dropped in November, ending a four-month period of growth.
The reduction, described as marginal, was linked to firms not replacing departing employees due to weaker sales and subdued confidence.
Business sentiment remained cautious, with output expectations for the coming year reaching near-record lows.
Input costs rose at their slowest pace since July, influenced by lower wage growth and a slight easing of material cost pressures, despite a stronger USD.
Wage growth hit a 16-month low, contributing to the moderation in input cost inflation.
Output charges also saw a modest rise, marking the lowest rate of increase in four months.
The construction sector even reported a slight decrease in selling prices, contrasting with price increases in other areas.
Supply chains showed signs of improvement, with delivery times shortening for the first time in a year, albeit slightly.
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