Egypt’s non-oil private sector activity contracted in October to the weakest level in eight months, due to solid reductions in output and new orders, survey figures from Emirates NBD and Markit Economics showed Tuesday.
The seasonally adjusted Emirates NBD Egypt Purchasing Managers’ Index, or PMI, fell to 47.2 in October from 50.2 in September.
A reading below 50 indicates contraction, while any reading above 50 suggests expansion in the sector.
The figure was consistent with a solid deterioration in business conditions, contrasting with the modest improvements seen in three of the four preceding months, the agency said.
Output dropped at the fastest pace in eight months in October, amid report of weaker-than-expected demand.
New orders also dropped in October to an eight-month low. Furthermore, new export work showed a similar downward trend, with the latest decline the joint-fastest in 25 months.
Employment level in the sector fell at the fastest rate in six months, but moderate overall.
On the price front, input price inflation accelerated notably in October, led by the steepest rise in purchase prices since March. The ongoing weakness of the Egyptian pound relative to the US dollar was cited as the key factor behind inflationary pressures.
However, this had little impact on selling prices. It dropped for the second successive month in October.
The material has been provided by InstaForex Company – www.instaforex.com