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Egypt’s PMI maintains level in November; business activity declines

Egypt’s PMI maintains level in November; business activity declines
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Cairo – Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Egypt recorded 48.7 in November, unchanged from October, amid an overall moderate deterioration, according to IHS Markit report.

Egypt’s PMI has been signalling below the 50 neutral mark for 12 months in a row. Commenting on November performance, Economist at IHS Markit, David Owen, said: “Inflationary pressures and supply shortages were again the most prominent depressors of Egypt's non-oil economy in November.”

IHS Markit survey indicated a decline in business conditions due to lower production levels in November. In addition, activity decreased for the third consecutive month, amid contraction largely similar to October.

Some Egyptian firms said that higher selling prices deterred customer spending in the local market.

Production decreased in November, as new business plunged at the quickest pace for six months.

Global supply problems have affected vendor performance negatively for the first time since June, according to the report.

Owen added: “Whilst easing from October, the rate of output price inflation was the second-quickest since mid-2018, providing more ominous signs about the trajectory of consumer prices."

Jobs growth has started to deteriorate midway through the fourth quarter (Q4) of 2021.