PMI hits 40-month low

Business monthly (Egypt) - - IN BRIEF -

The down­turn in Egypt's non-oil pri­vate sec­tor ac­cel­er­ated, ac­cord­ing to busi­nesses sur­veyed for the Pur­chas­ing Man­agers' In­dex. The head­line PMI score edged down to 41.8 in Novem­ber, com­pared to 42 in Oc­to­ber, the low­est level since July 2013. Any score be­low 50 in­di­cates a de­te­ri­o­ra­tion in con­di­tions dur­ing the month. Busi­nesses sur­veyed cited steep in­fla­tion and the weak­ness of the pound against the dol­lar as con­tribut­ing to a record rise in costs, with raw ma­te­ri­als re­ported to be largely un­af­ford­able and in short sup­ply. With costs passed on

to con­sumers, both out­put and or­ders fell. To curb rising costs, firms cut jobs for the eigh­teenth month in a row. “The on­go­ing down­trend ev­i­dent in Novem­ber’s sur­vey high­lights that there will be no quick fixes to Egypt’s eco­nomic dif­fi­cul­ties, even fol­low­ing the EGP de­val­u­a­tion ear­lier in the month," said Jean-Paul Pi­gat, se­nior econ­o­mist at sur­vey spon­sor Emi­rates NBD, in a press state­ment. “In this environment, it is cru­cial that au­thor­i­ties re­main com­mit­ted to their IMF-sup­ported re­form pro­gram in or­der to an­chor in­vestor con­fi­dence.”

Newspapers in English

Newspapers from Egypt

© PressReader. All rights reserved.