Cairo – Mubasher: The headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) jumped to 47.6 in August 2022 from 46.4 a month earlier, reaching its highest reading since February.
In August, Egypt’s non-oil economy recorded a softer decline in operating conditions, as easing inflationary pressures helped alleviate spending constraints at clients. The outlook for future activity remained subdued, however, according to a recent press release.
The rise in the headline index was mainly boosted by the output and new orders indices, which both ticked higher for the second month running from June's recent lows. However, the readings indicated marked declines in business activity and sales.
The Economist at S&P Global Market Intelligence, David Owen, said: "Headwinds on the global economy meant that businesses showed little optimism towards future activity, as expectations slipped to the second-lowest on record. Monetary policy uncertainty, a weakening exchange rate, and the continued war in Ukraine mean there are still high levels of risk for the economy over the rest of 2022."
Meanwhile, employment rose at the quickest rate since October 2019, as some firms looked to raise their capacity and support backlog depletion.
On the price front, August survey data showed a broad softening of input cost pressures in Egypt, with inflation easing sharply for the second consecutive month. Higher purchase prices were again widely reported, and wage costs shrank for the first time in five months.
“Looking ahead, Egyptian non-oil firms remained relatively downbeat about future output levels in August, with just 9% of respondents forecasting growth over the coming year. Despite hopes of a recovery in demand, sentiment was dampened by weak market conditions, high inflation and sustained supply problems. The overall degree of positively was the second-lowest on record, higher than only March's nadir,” S&P Global said
