{"id":656423,"date":"2024-12-04T00:00:00","date_gmt":"2024-12-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/04\/egypts-non-oil-private-sector-activity-contracts-at-slowest-pace-in-three-months\/"},"modified":"2024-12-04T00:00:00","modified_gmt":"2024-12-04T00:00:00","slug":"egypts-non-oil-private-sector-activity-contracts-at-slowest-pace-in-three-months","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/04\/egypts-non-oil-private-sector-activity-contracts-at-slowest-pace-in-three-months\/","title":{"rendered":"Egypt\u2019s non-oil private sector activity contracts at slowest pace in three months"},"content":{"rendered":"

The non-oil<\/strong> private sector is still contracting, but signs of stabilization are beginning to <\/strong>emerge. <\/strong>Egypt\u2019s non-oil private sector activity contracted for the third consecutive month in November, edging up to 49.2 from 49.0 in October<\/a>, according to S&P Global\u2019s latest Purchasing Managers\u2019 Index (PMI) report (pdf)<\/a>. The reading came as subdued customer demand and weaker new order inflows continued to weigh on business activity \u2014 though contraction eased to its mildest pace in three months.<\/p>\n

This month\u2019s reading saw the second consecutive month of improvement in PMI <\/strong>numbers<\/strong> and the highest reading since August<\/a>, when non-oil private sector activity breached the 50.0 mark that separates growth from contraction for the first time in over three years.<\/p>\n

Input price inflation slowed to a four-month low in November,<\/strong> with rising wages and material costs exerting less pressure than in previous months. A stronger USD continued to drive up costs for imported goods, but overall inflationary pressures softened, moderating the rise in purchase prices.<\/p>\n

Manufacturing showed tentative signs of recovery<\/strong>, with modest growth in orders boosting output. However, this uptick was offset by continued contraction in construction, wholesale and retail, and services.<\/p>\n

Employment fell for the first time in five months<\/strong>, registering the sharpest drop in headcount since February. S&P Global attributed the decline to firms\u2019 hesitancy to replace voluntary leavers due to lower sales volumes and subdued confidence. <\/p>\n

While the reading suggests that business conditions are edging closer to stabilization,<\/strong> firms reported one of the lowest levels of confidence seen in the survey\u2019s history.<\/strong> Commenting on Egypt\u2019s future outlook, senior economist at S&P Global Market Intelligence David Owen noted that \u201creductions in purchasing activity and employment hint that firms are not expecting capacity levels to be challenged too much in the months ahead.\u201d<\/p>\n

ELSEWHERE IN THE REGION-<\/p>\n