{"id":574293,"date":"2020-09-06T03:51:30","date_gmt":"2020-09-06T03:51:30","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/"},"modified":"2020-09-06T03:51:30","modified_gmt":"2020-09-06T03:51:30","slug":"private-sector-recovery-stalls-in-august","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/","title":{"rendered":"Private sector recovery stalls in August"},"content":{"rendered":"

<\/a> The <\/strong>recovery of Egypt\u2019s non-oil private sector <\/strong>stalled in August<\/strong> despite growth in output and demand, according to IHS Markit PMI figures<\/a>(pdf)<\/a>. The index had reached a one-year high of 49.6 in July<\/a> as business conditions rebounded following the covid-19 lockdown but fell back fractionally to 49.4 last month amid continued job losses, IHS Markit said. A reading above 50.0 indicates expansion and below, contraction.<\/p>\n

Output, demand rise for the second month running:<\/strong> Output and new orders rose for the second consecutive month in August, albeit at a slightly weaker rate than July. Some businesses told the survey that demand has yet to return to pre-covid levels and that sales continue to underperform. \u201cThis suggests that many firms are still finding business conditions though, despite the relaxation of many covid-19 related restrictions,\u201d said David Owen, economist at IHS Markit.<\/p>\n

But tourism was a bright spot:<\/strong> Tourism and hospitality also seem to have picked up more steam in August, with foreign customer demand rising at its quickest pace in nearly three years, in part due to the reopening of tourist sites which increased visitor numbers to Egypt.<\/p>\n

Employment drops for 10th consecutive month:<\/strong> August saw a \u201csolid\u201d drop in employment as companies cut jobs due to low workloads, dragging the headline index down. This was the 10th straight month of job losses. \u201cConsumer demand remains weak, with new business picking up at only tentative rates in both July and August. As a result, employment levels were not sustained,\u201d said Owen.<\/p>\n

Output prices rose for the first time in 10 months<\/strong>, as input costs continued to rise. Higher price tags for medical equipment and disinfectants were drivers of the overall rise in input prices. Despite this, inflation slowed slightly from July but remained \u201csolid.\u201d Wage costs grew at their quickest rate in six month, but only \u201cmildly.\u201d<\/p>\n

The amount of outstanding work increased for the fourth successive month,<\/strong> driven by job cuts, import delays and liquidity problems at some companies.<\/p>\n

Sentiment takes a hit:<\/strong> Sentiment on output over the coming 12 month was down \u201cconsiderably\u201d from July\u2019s 29-month high, hitting its lowest level since May. This caused firms to further reduce purchases, Owen said. A higher proportion of companies, however, still see things improving, hoping that the worst of the pandemic is now over.<\/p>\n","protected":false},"excerpt":{"rendered":"

The recovery of Egypt\u2019s non-oil private sector stalled in August despite growth in output and demand, according to IHS Markit PMI figures(pdf). The index had reached a one-year high of 49.6 in July as business conditions rebounded following the covid-19 lockdown but fell back fractionally to 49.4 last month amid continued job losses, IHS Markit […]<\/p>\n","protected":false},"author":1,"featured_media":574294,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,1486,185,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-574293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-enterpriseam","tag-non-oil-business-activity","tag-pmi","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"5db5c208-73ce-4d80-b9f5-815d37efef76","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2020\/9\/66.jpg","photo_position":"above","related_issue":[574288],"teaser":"","voice_url":""},"yoast_head":"\nPrivate sector recovery stalls in August - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Private sector recovery stalls in August\" \/>\n<meta property=\"og:description\" content=\"The recovery of Egypt\u2019s non-oil private sector stalled in August despite growth in output and demand, according to IHS Markit PMI figures(pdf). The index had reached a one-year high of 49.6 in July as business conditions rebounded following the covid-19 lockdown but fell back fractionally to 49.4 last month amid continued job losses, IHS Markit […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-06T03:51:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2020\/9\/66.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Private sector recovery stalls in August\",\"datePublished\":\"2020-09-06T03:51:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/\"},\"wordCount\":386,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2020\/9\/66.jpg?fit=%2C&ssl=1\",\"keywords\":[\"EnterpriseAM\",\"non-oil business activity\",\"PMI\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/06\/private-sector-recovery-stalls-in-august\/\",\"name\":\"Private sector recovery stalls in August - 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The gauge rose to 50.4 from 49.4 in August, indicating the first month of economic expansion\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/10\/55.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":594685,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/04\/egypts-non-oil-business-activity-shrinks-again-in-august\/","url_meta":{"origin":574293,"position":1},"title":"Egypt\u2019s non-oil business activity shrinks again in August","author":"enterpriseam admin","date":"4 September 2019","format":false,"excerpt":"Non-oil business activity shrinks again in August: Falling output caused activity in Egypt\u2019s non-oil private sector to contract in August after a month of expansion in July, according to the Markit\/Emirates NBD purchasing managers\u2019 index (PMI) (pdf). The PMI gauge fell to 49.4 in August from 50.3 in July, indicating\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/9\/3005.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":573464,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/06\/non-oil-business-activity-hits-12-month-high-in-july\/","url_meta":{"origin":574293,"position":2},"title":"Non-oil business activity hits 12-month high in July","author":"enterpriseam admin","date":"6 August 2020","format":false,"excerpt":"Non-oil business activity hits 12-month high in July: Activity in Egypt\u2019s non-oil private sector contracted at its slowest rate in a year in July as rising output and expanding exports signalled improved business conditions after activity fell to an all-time low at the height of the covid-19 crisis. 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The gauge rose to 51.4 from 50.4 in September, a level comfortably\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/11\/56.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":557079,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/06\/egypts-private-sector-is-responding-to-rising-inflation-by-buying-a-lot\/","url_meta":{"origin":574293,"position":4},"title":"Egypt\u2019s private sector is responding to rising inflation by buying. 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