Egypt Non-Oil Private Sector PMI At 26-Month Low

(RTTNews) - Egypt's non-oil private sector activity deteriorated at the fastest pace in twenty-six months in November, as output and new orders continued to fall sharply, survey figures from Emirates NBD and Markit Economics showed Monday.

The seasonally adjusted Emirates NBD Egypt Purchasing Managers' Index, or PMI, dropped to 45.0 in November from 47.2 in October. A reading below 50 indicates contraction in the sector.

Moreover, the sector has now contracted in eight out of eleven months so far in this year.

Both output and new orders declined at the steepest pace in more than two years in November. A depreciation of the Egyptian pound against the US dollar was reportedly a factor behind lower new work.

Employment level in the sector fell further in November. The latest job shedding was the quickest in the series history. Meanwhile, backlogs of work continued to rise, but only slightly.

On the price front, input price inflation accelerated to a 31-month high, driven by higher purchasing prices due to the weakness of the Egyptian pound. In contrast, selling prices showed no variations.