{"id":658213,"date":"2025-01-06T00:00:00","date_gmt":"2025-01-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/06\/egypts-pmi-reading-for-december-sees-output-fall-at-fastest-clip-in-eight-months\/"},"modified":"2025-01-06T00:00:00","modified_gmt":"2025-01-06T00:00:00","slug":"egypts-pmi-reading-for-december-sees-output-fall-at-fastest-clip-in-eight-months","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/06\/egypts-pmi-reading-for-december-sees-output-fall-at-fastest-clip-in-eight-months\/","title":{"rendered":"Egypt\u2019s PMI reading for December sees output fall at fastest clip in eight months"},"content":{"rendered":"

Good afternoon folks, and happy Monday. <\/strong>While the weather might be getting chillier, the new year\u2019s presses are just starting to heat up.<\/p>\n

Merry Christmas to everyone celebrating tomorrow:<\/strong> Don\u2019t forget that the whole country is off tomorrow in observance of Coptic Christmas.<\/p>\n

That means us, too: <\/strong>EnterprisePM will be off tomorrow and we will be back in your inboxes at our customary time on Wednesday afternoon.<\/p>\n

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THE BIG STORY TODAY<\/p>\n

Non-oil private sector activity contracts in December off the back of a weakening EGP: <\/strong>Egypt\u2019s non-oil private sector activity in December fell to 48.1 from 49.2<\/a> last month, marking sector activity\u2019s fourth consecutive month of contraction, with output contracting at its fastest clip in eight months, according to S&P Global\u2019s latest Purchasing Manager\u2019s Index (PMI) report (pdf)<\/a>. Driving the decline were rising prices amid a weakening EGP against the USD, which saw demand and new order volumes fall, particularly in the construction and wholesale & retail sectors. Firms sought to protect order volumes by cutting margins, contributing to a boost in sentiment up from November\u2019s all-time low.<\/p>\n

It\u2019s not all roses for the Egyptian private sector in 2025: <\/strong>\u201cThe latest Egypt PMI data showed that the non-oil private sector\u2019s anticipated recovery is unlikely to be without its setbacks in 2025,\u201d said senior economist at S&P Global Market Intelligence David Owen. Looking toward the coming months, Owen noted that \u201cexchange rate movements could be a decisive factor in how output and profits fare in the coming months.\u201d<\/p>\n

PLUS- FRA lowers age for trading in securities to 15: <\/strong>The Financial Regulatory Authority (FRA) has greenlit an amendment that will lower the age at which individuals can trade in EGX-listed securities to 15, down from 16 currently, <\/strong>the authority announced in a statement<\/a>. Individuals between 15 and 21 will also now be able to hold a portfolio worth up to EGP 40k, up from EGP 10k currently.<\/p>\n

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THE BIG STORY ABROAD<\/p>\n

Splashed across today\u2019s international headlines <\/strong>is news that Canadian prime minister Justin Trudeau is likely to step down as head of Canada\u2019s Liberal Party after nine years in office. The resignation, which is expected to be announced before a meeting of Liberal Party members on Wednesday, comes as the party faces down a series of bleak polls that see the opposition Conservative Party trouncing the Liberals in elections that must be held by late October. It\u2019s as yet unclear whether Trudeau will continue in his post as PM if he opts to resign as head of his party. (Reuters<\/a> | Bloomberg<\/a>)<\/p>\n

Chinese regulators are stepping in to arrest a slide in Chinese equities and the country\u2019s <\/strong>exchange rate,<\/strong> after mainland China\u2019s benchmark CSI 300 index declined 4.1% in the first three trading days of the new year \u2014 the worst performance among all of Asia\u2019s blue-chip stock indices. China\u2019s central bank assured investors that it would guard against any exchange rate overshooting as the CNY dropped to a 15-month low against the USD, while the Shanghai and Shenzhen stock exchanges have reportedly asked several large mutual funds to limit stock selloffs until the market stabilizes. (Financial Times<\/a> | Reuters<\/a>)<\/p>\n

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