{"id":607514,"date":"2023-10-04T00:00:00","date_gmt":"2023-10-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/04\/pmi-positivity-went-into-reverse-in-september\/"},"modified":"2023-10-04T00:00:00","modified_gmt":"2023-10-04T00:00:00","slug":"pmi-positivity-went-into-reverse-in-september","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/04\/pmi-positivity-went-into-reverse-in-september\/","title":{"rendered":"PMI positivity went into reverse in September"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong> Two steps forward, one step back: <\/strong>The contraction in Egypt\u2019s non-oil private sector deepened in September as the impact of successive currency devaluations caused a sharp fall in output, according to <a target=\"_blank\" href=\"https:\/\/ent.news\/2023\/10\/269.pdf\" style=\"\" rel=\"noopener\">S&amp;P Global\u2019s latest PMI figures (pdf)<\/a> out yesterday. The index slipped to a four-month low of 48.7 from <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b2901184-ee7b-445d-9851-bac0effcb26c\" style=\"\" rel=\"noopener\">49.2 in August<\/a> as <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4679aee6-2384-41d3-b930-cb4678b4e942\" style=\"\" rel=\"noopener\">soaring inflation<\/a> and shortages of raw materials caused an \u201cunprecedented\u201d rise in backlogs despite client demand continuing to fall.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> A reversal: <\/strong> The depth of contraction had gradually eased over the previous five months, with the waning effects of January\u2019s currency devaluation helping to stabilize the non-oil economy and pushing the PMI to its highest level in almost two years in June. Nonetheless, the reading has remained below the 50.0 threshold that separates growth from contraction for 34 months, taking us close to three years with zero growth.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> High prices + supply problems = record backlogs: <\/strong>Businesses faced \u201cunprecedented&nbsp;<span style=\"background-color: transparent;\">pressure on their operating capacity in September despite sales continuing to fall,\u201d said David Owen, senior economist at S&amp;P Global Market Intelligence. \u201cFirms frequently reported that the high-inflationary environment and a lack of raw material supply meant they were often unable to fulfill client orders,\u201d he added. This is the sharpest recorded increase in work backlogs since the PMI survey was launched in 2011.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> But businesses are hiring: <\/strong> Firms recruited new staff at the fastest rate in more than five years in September, according to the PMI. This is the second month running companies have expanded headcount.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Looking into the crystal ball<\/strong>: September\u2019s report described non-oil businesses as \u201cmildly confident\u201d of an increase in output over the next year. On the confidence front, the report pointed to a slip in confidence from August\u2019s poll that reported only 9% of respondents sharing a <a target=\"_blank\" href=\"https:\/\/ent.news\/2023\/9\/349.pdf\" style=\"\" rel=\"noopener\">positive outlook<\/a> for the coming year, stating liquidity and price volatility concerns.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> FROM THE REGION- Saudi PMI accelerates: <\/strong> The kingdom\u2019s non-oil private sector grew at an accelerated rate last month with their headline PMI rising to 57.2 from 56.6 in August on stronger sales, according to <a target=\"_blank\" href=\"https:\/\/ent.news\/2023\/10\/270.pdf\" style=\"\" rel=\"noopener\">the PMI (pdf)<\/a>. The UAE PMI is due out today at 7:15am CLT.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Backlogs shot to \u201cunprecedented\u201d highs during the month due to inflation and raw materials shortages<\/p>\n","protected":false},"author":1,"featured_media":607515,"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":[7206],"tags":[104,72,185,219],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-607514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-pmi","tag-saudi-arabia","wpautop","entry"],"acf":{"mongo_id":"37e16884-e004-4518-b66e-ae943f37c2b8","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/10\/293.jpeg","photo_position":"above","homepage_title":"Contraction in Egypt\u2019s non-oil private sector deepens in September","full_issue_title":"Contraction in Egypt\u2019s non-oil private sector deepens in September","related_issue":[607507],"teaser":"Backlogs shot to \u201cunprecedented\u201d highs during the month due to inflation and raw materials shortages","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/10\/.5b545921-fa0b-4cad-9ed5-b82783165949.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The index\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/11\/324.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":553482,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/06\/rising-inflation-weighs-on-private-sector-activity-in-november\/","url_meta":{"origin":607514,"position":2},"title":"Rising inflation weighs on private sector activity in November","author":"enterpriseam admin","date":"6 December 2021","format":false,"excerpt":"Egypt\u2019s non-oil business activity shrank \u201cmoderately\u201d during November, with a closely followed gauge of business conditions unchanged from the month prior as supply chain bottlenecks and inflationary pressures continued to weigh on private sector firms. The IHS Markit Purchasing Managers\u2019 Index (PMI) (pdf) remained at 48.7 last month, marking the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/229.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":547012,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/06\/business-conditions-decline-in-may-on-inflation-worries\/","url_meta":{"origin":607514,"position":3},"title":"Business conditions decline in May on inflation worries","author":"enterpriseam admin","date":"6 June 2022","format":false,"excerpt":"Activity in Egypt\u2019s non-oil private sector declined for the 18th month in a row in May as inflation continued to weigh on demand, according to the S&P Global purchasing managers\u2019 index survey (pdf). Business activity contracted at a slightly slower pace during the month, with the index inching up to\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/6\/153.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":609478,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/06\/pmi-contracts-at-sharpest-rate-in-five-months\/","url_meta":{"origin":607514,"position":4},"title":"PMI contracts at sharpest rate in five months","author":"enterpriseam admin","date":"6 November 2023","format":false,"excerpt":"This is the 35th straight month that Egypt\u2019s non-oil economy has been in contraction","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/11\/193.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":589633,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/06\/the-pmi-was-in-contraction-territory-again-in-june\/","url_meta":{"origin":607514,"position":5},"title":"The PMI was in contraction territory again in June","author":"enterpriseam admin","date":"6 July 2023","format":false,"excerpt":"The PMI rose to 49.1 from 47.8 in May","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/7\/129.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/607514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=607514"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/607514\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/607507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/607515"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=607514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=607514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=607514"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=607514"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=607514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}