- The headline seasonally-adjusted IHS Markit Egypt Purchasing Managers’ Index (PMI) fell to 45.5 in January from 47.2 in December, signaling the most rapid decline in 26 months, the data showed
According to Zawya article published on February 13, 2023, Egyptian non-oil private sector economy witnessed a notable downturn in operating conditions in January, with the devaluation of the pound weighing on prices, according to the S&P Global Egypt PMI™ release issued on February 5th.
The headline seasonally-adjusted IHS Markit Egypt Purchasing Managers’ Index (PMI) fell to 45.5 in January from 47.2 in December, signaling the most rapid decline in 26 months, the data showed.
“The latest PMI survey data showed purchasing costs increasing at the sharpest rate in four-and-a-half years, as the pound's depreciation drove a further rise in import fees,” David Owen, Senior Economist at S&P Global Market Intelligence, commented.
Inflationary pressures pushed down new business inflows in January, forcing firms to make additional cuts in activity, purchasing, and employment.
New order inflows dropped at a faster pace last month, as firms reported that higher prices had limited client budgets.
“The dollar shortage added significantly to Egypt's economic challenges in 2022 and will likely remain a major problem this year. As such, business forecasts for the coming 12 months fell to their third-lowest on record, as firms predict supply and price-related issues to hamper demand further,” Owen said.
“Firms also gave a downbeat assessment of the year ahead as output expectations dropped to the third lowest level in the series history,” the release added.
