Inflationary pressures weigh on Egypt's non-oil business in January
Updated 2/5/2024 7:55:00 AM
Arab Finance: Egypt’s non-oil private sector businesses saw downswing in operating conditions in January, as sales volumes continued to plummet amid intensified price pressure, according to the S&P Global Egypt Purchasing Managers’ Index™’s (PMI) survey posted on February 5th.
The headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) ticked down to 48.1 in January from 48.5 in December, the data showed.
Selling price inflation increased at its fastest level in a year as firms sought to pass on higher input prices which weakened new orders and led to contractions in output levels and purchasing activities.
The report showed that input costs and output charges increased at their sharpest rates in 12 months, as a result of a significant and accelerated rise in purchasing costs.
“Some firms signaled that the Israel-Gaza conflict and associated geopolitical tensions had a negative impact on tourism activity, which could lead to further headwinds for the non-oil economy over the next few months” Economist at S&P Global Market Intelligence David Owen commented.
According to the survey, the downturn in new business activity raises concerns over the persistence of weak economic conditions in 2024.
This, in turn, worsened business expectations for the next 12 months, hitting the lowest rates in the series history.
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