CAIRO - 3 December 2024: Egypt’s private sector is showing signs of stabilization, according to the latest Purchasing Managers’ Index (PMI) data from S&P Global. November’s PMI rose slightly to 49.2, up from 49.0 in October, signalling a potential recovery in Egypt’s non-oil private sector. While still below the growth threshold of 50.0, this marks the smallest downturn in three months, suggesting the sector may be nearing stabilization after an extended period of contraction.
Manufacturing saw modest growth in new orders, helping to offset weaker performance in sectors such as construction, wholesale, retail, and services. Many companies have reported improvements in demand, offering hope for a recovery in the coming months.
Inflationary pressures also eased in November, with input prices rising at the slowest pace since July. This was partly due to slower wage growth, providing some relief to both consumers and businesses. However, challenges such as the impact of a stronger US dollar on purchasing costs remain. Despite this, the overall moderation in inflation is a positive sign for the future.
Employment levels slightly declined, as companies remained cautious in hiring due to ongoing fluctuations in demand. David Owen, Senior Economist at S&P Global Market Intelligence, highlighted the resilience within the sector, noting that the slowdown in declines suggests the economy is edging closer to stability, with encouraging signs of growth in manufacturing.
Although input prices continued to rise, they did so at the slowest rate since July. However, purchase prices remained elevated, partly due to the strength of the US dollar. Firms remain cautious about future business activity, with output expectations for the year ahead at 50.5, the second lowest in the history of the series.
Owen emphasized that the slower declines in output and new business across the non-oil sector in November indicate that business conditions are approaching stability.
Comments
Leave a Comment