IHS Markit’s Purchasing Managers’ Index (PMI) came in at 49.3, up from 48.7 in January
Egypt’s non-oil private sector activity dropped for the 3rd month in a row in February, attributed to the decline in production and new business, stated the IHS Markit Research Foundation.
IHS Markit’s Purchasing Managers’ Index (PMI) came in at 49.3, up from 48.7 in January but still below the 50.0 threshold that separates growth from contraction.
“The rate of new foreign business growth was the sharpest in nearly 10 years of survey data collection,” IHS Markit said. “Firms reported an increase in new contracts as well as a slight improvement in tourism activity.
“Nevertheless, overall demand was hampered by weak customer spending as markets remained depressed due to the pandemic,” they added.
Private sector companies credited production declines to the drop in sales attributed to the pandemic’s continued impact, however the speed of contraction has slowed since the beginning of the year and was modest.
HIS Markit further explained the drop in sales was actually less prominent compared to January 2021, partly due to an increase in export demand.
Foreign business growth rate was the steepest in nearly 10 years, and companies recorded an increase in new contracts in addition to a slight improvement in the tourism sector. Due to the impact of the pandemic, customer spending has slowed the growth of overall demand.
Job numbers continued to decline during Q1, with some companies admitting not replacing employees that left voluntarily in efforts to reduce staff costs, with the employment sub-index came in at 49.3 compared to the 48.7 recorded in January.
“Alongside business sentiment data, this gives promising signs for an expansion in output as the impact of the COVID-19 pandemic subsides,” IHS Markit economist David Owen said.
