Cairo – Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Egypt increased to 46.9 in February 2023 from 45.5 last January, according to the latest S&P Global PMI data.
The PMI showed that Egypt's non-oil economy remained in a steep downturn during February, as high inflation and supply chain pressures continued to strike demand.
Consequently, job numbers shrank at the quickest rate in nine months (9M), while business confidence hit a near-record low. However, inflationary pressures softened from January's recent highs.
New business intakes declined at a slow pace in February, as client demand retreated due to high inflation.
In like manner, export sales fell sharply for the second successive month after the weak foreign economic climate had suppressed sales.
Non-oil firms in Egypt witnessed a remarkable softening of price pressures last month, following multi-year highs for two of the survey's price metrics.
Meanwhile, purchase price inflation dropped sharply in February to the weakest since last October, after it reached its highest level in four-and-a-half years in January.
David Owen, Economist at S&P Global Market Intelligence, highlighted: "The latest PMI data for Egypt continued to signal a troubled market in February, but with some relief after a rocky start to the year.”
“Output charge inflation was the softest for four months, after posting a near six-year high in the previous month. The findings provide some hope that inflation may start to soften after reaching 25.8% in January,” Owen added.
He mentioned: "Similarly, the downturns in output and new orders were not as severe in February compared to the first month of the year, as higher prices led to a solid, but softer fall in new business intakes.
The economist elaborated: "Efforts to streamline capacity coincided with another bleak assessment of future output, with expectations falling for the second month running and posting only just above the record low seen in October last year.”
