Egypt’s non-oil private sector businesses saw a modest downswing in operating conditions in September, as persistent inflationary pressures caused a depressed demand environment, according to the S&P Global Egypt Purchasing Managers’ Index™’s (PMI™) survey posted on October 3rd.
The headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) declined for the fourth month in a row to 48.7 in September from 49.2 in August, but still below the 50-point threshold that separates expansion from contraction, the data showed.
The report revealed that lower sales and difficulty in acquiring raw materials due to the rising import costs and prices led to the highest increase in backlogs of work since 2011.
This came in spite of a further decline in new orders, the data showed.
The PMI's sub-index for input prices saw a marginal slowdown in September from m August's five-month high.
“The weak exchange rate against the US dollar led to another steep rise in purchase prices in September, adding to indications that inflation will remain high until related factors are under control, such as food supply and foreign currency reserves,” Senior Economist at S&P Global Market Intelligence David Owen said.
Non-oil businesses showed a lower level of confidence of an increase in output in the next 12 months, with concerns over price volatility and liquidity challenges.
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