Cairo - Mubasher: Egypt’s non-oil economy witnessed worsened market conditions in July as output and new orders declined amid the continued impact of the pandemic, according to a new survey on Tuesday.
The seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index (PMI) slipped to 49.1 in July from 49.9 in June. A reading above 50 indicates expansion, while a reading below that signals contraction.
Due to a drop in domestic spending amid the ongoing COVID-19 measures, output and demand fell for the seventh time in eight months but at rates "less marked than those observed between March and May and during the first half (H1) of 2020."
An increase in orders from foreign clients has helped soften the overall drop in demand.
Meanwhile, input inflation prices softened to a four-month low amid slighter increases in both purchase and staff costs.
Employment rose for the first time since October 2019, showing "an improved confidence that the worst impact of the pandemic is over," David Owen, an economist at IHS Markit, said.
"Many businesses are now eager to boost capacity, particularly as new order growth recorded in June led to a modest pile-up of outstanding work in the latest survey period," Owen noted.
"With the New Orders Index falling back into negative territory, it is clear that the economic recovery remains fragile and in need of further supportive measures to strengthen demand," he pointed out.
