Cairo – Mubasher: Egypt's non-oil private sector worsened for the third successive month in February, but at a softer pace from January, helped by a record increase in exports.

The seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index advanced to 49.3 in February, compared to 48.7 in January, according to a report on Wednesday. A reading above 50 indicates expansion, while a reading below that signals contraction.

Export sales witnessed a strong upturn during the month, registering the sharpest growth rate in about 10 years of survey data collection.

“Nevertheless, overall demand was hampered by weak customer spending as markets remained depressed due to the pandemic,” IHS Market said.

Output and new orders declined, leading companies to reduce their purchasing activity in February.

"Meanwhile, employment fell at a slower rate in February, as some firms expanded their staffing levels to account for an increase in workloads,” David Owen, an economist at IHS Markit, said.

“This gives promising signs for an expansion in output as the impact of the COVID-19 pandemic subsides, though panellist comments suggested that some businesses may fail before the economy makes a full recovery,” he pointed out.

The outlook for the coming 12 months worsened in February; however, companies are still optimistic that output would increase from current levels.