(3 minutes read)
- IHS Markit Egypt Purchasing Managers’ IndexTM (PMI) remained unchanged at 48.7 in November
- This is the 12th month in a row that PMI is registering below the 50 neutral mark.
- A sharp rise in business costs had led to higher selling prices and consequent lower demand across the Egyptian non-oil economy during November
- The sharp decline in performance is noticed among new businesses.
- The purchasing power of the people also had declined.
IHS Markit Egypt Purchasing Managers’ IndexTM (PMI) remained unchanged at 48.7 in November. This is the 12th month in a row that PMI is registering below the 50 neutral mark.
A sharp rise in business costs had led to higher selling prices and consequent lower demand across the Egyptian non-oil economy during November. The sharp decline in performance is noticed among new businesses. In the last six months, their output has declined. This led to a cut in employment. The purchasing power of the people also had declined. This has put a spanner on the expectations of growth.
Inflationary pressures and supply shortages were crucial in the non-oil economy in November. Output was down for the third month in a row, matched by a third consecutive decline in new business as higher selling prices deterred client spending in the domestic economy. Increased shipping and energy prices continued to burden firms with rising input costs.
PMI showed that selling charges were raised sharply midway through the fourth quarter. Some firms highlighted price mark-ups of over 10 percent in order to protect their profit margins.
Input cost inflation was also there. Higher fuel and shipping costs often led to increased prices, including for raw items such as foodstuff and paper. Salary costs meanwhile rose for the third month running as companies raised wages in response to an uptick in living expenses.
