Egypt non-oil downturn deepens in September as orders slump, PMI shows

By Reuters News

Oct 5 (Reuters) - Egypt's non-oil private sector contracted at a faster pace in September as output and new orders fell sharply amid inflation and geopolitical disruptions, a business survey showed on Monday.

  • The seasonally adjusted S&P Global Egypt Purchasing Managers' Index (PMI) fell to 47.2 in September from 49.6 in August, a survey by S&P Global showed. The 50-mark separates growth from contraction.

  • Output and new business both declined at faster rates in September. Firms cited weaker market conditions, ongoing geopolitical disruptions and strong inflationary pressures.

  • Export sales also fell, though at a marginal pace that was the joint-slowest in the current seven-month decline.

  • Employment rose for a second straight month, the first back-to-back increase in staffing in more than a year, although the pace slowed from August and remained slight.

  • Output price inflation eased slightly from August but remained steep and well above the historical trend, while input cost inflation rose to a three-month high.

  • The survey said firms remained optimistic that output would rise over the coming 12 months.

  • "All this suggests that Egyptian firms remain hopeful about the future in spite of the economic challenges they face," said David Owen, Principal Economist at S&P Global Market Intelligence.

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