Non-oil private sector activity in Egypt declined at the fastest pace in four months in May, results of a survey by Markit Economics and HSBC showed Tuesday.
The purchasing managers’ index dropped to a four-month low of 48.7 from 49.5 index recorded in April. Though the index was above the long-run series average, this was the third consecutive month of contraction in the operating conditions of non-oil producing private sector companies.
New orders declined at a faster rate in May, on account of the upcoming elections and unstable security conditions in the country, this marked the third consecutive month of decline and the fastest since January. Export orders also eased.
Staffing levels fell for the 25th consecutive month in May. The rate of decline was slightly faster than in April.
Input price inflation eased to a seven-month low. Meanwhile, output prices declined for the second time in three months as non-oil private sector firms tried to attract new customers, the report said.
Purchasing activity declined for the second time in three months in May.
Simon Williams, chief economist for the Middle East at HSBC commented, “It’s another disappointing number and contains no signs that the economy is starting to recover – output is weak, new orders are falling and employment is contracting.
“This is the eighteenth time in the past 20 months that the PMI has printed below 50 -a protracted and deep slump in activity that underscores the scale of the challenges the new regime faces as it seeks to revive the country’s economic fortunes.”
Published: 2014-06-03 11:06:00 UTC+00
Egypt Non-oil Private Sector Shrinks At Faster Rate In May
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