Egypt Non-Oil Private Sector Contracts For Fourth Month

(RTTNews) - Egypt's non-oil private sector activity contracted for the fourth consecutive month in January, as output, new orders and employment continued to fall, survey figures from Emirates NBD and Markit Economics showed Wednesday.

The seasonally adjusted Emirates NBD Egypt Purchasing Managers' Index, or PMI, dropped to 48.0 in January from 48.2 in the previous month. A reading below 50 indicates contraction in the sector.

Both output and new orders fell for the fourth straight month in January, the longest period of joint decline in more than two years. Employment level in the sector declined for the eighth successive month.

On the price front, input prices continued to rise sharply in January, driven by higher purchasing costs due to another depreciation of the Egyptian pound against the US dollar. In contrast, firms reduced their selling prices in an effort to secure new clients.