Egypt's Non-Oil Private Sector Continues To Contract: Markit

(RTTNews) - Activity in Egypt's private sector economy decreased further in August, but at a slightly slower pace than in the previous month, survey data released by Markit Economics and HSBC Bank showed Tuesday.

The seasonally adjusted purchasing managers' index for the non-oil producing private sector was at 42.2 in August, slightly higher than the previous month's reading of 41.7, but well below the no-change 50 mark that separates growth from contraction. Operating conditions deteriorated continuously since last October.

New orders in the sector decreased significantly during the month, which is attributable to the ongoing political crisis. The fall in export orders was the second-strongest since records began.

Production at Egypt's non-oil producing firms contracted sharply in August, in line with the fall in new business. Concerned with the slump in activity, firms lowered their workforces for the sixteenth consecutive month.

Input price inflation faced by private sector firms eased during the month. Output prices picked up only fractionally as some companies lowered their selling prices in order to attract new customers.