Cairo – Mubasher: Egypt’s non-oil private sector has weakened slightly during August after a mild expansion in the prior month, according to a report compiled by IHS Markit for Emirates NBD PJSC.

The seasonally adjusted Emirates NBD Egypt Purchasing Managers’ Index (PMI) declined to 49.4 in August from 50.3 in July, marking a mild deterioration in the sector which was the tenth worsening in twelve months. A reading above 50 indicates expansion, while a reading below that signals contraction.

 “The decline was due to a drop in sales which, whilst down for the third time in four months, was the weakest fall seen in this period,” economist at IHS Markit, David Owen, remarked.   

Output and new orders fell slightly, but new export orders grew for the second successive month.   

Meanwhile, employment increased mildly for the first time in four months, but backlogs rose amid issues with liquidity, the report added.

Input prices grew on the back of higher fuel prices due to subsidiary reforms.

The report highlighted that outlook for business activity surged to the highest level since February 2018 as companies expressed hopes of a recovery in growth.