Egypt's Non-Oil Private Sector Slips Back Into Contraction: Markit

(RTTNews) - Egypt's non-oil private sector returned to contraction in January, after recording growth for two consecutive months, survey data released by Markit Economics and HSBC Bank revealed Tuesday.

The seasonally adjusted purchasing managers' index for the non-oil private sector dropped to 48.7 in January from 52 in December. Index readings below 50 suggest contraction, while those above signal growth.

Production at Saudi firms decreased for the first time in three months in January. In line with the weak trend for output, inflows of new work also fell during the month, owing mainly to lower demand in the domestic market.

Reflecting the fall in workload, firms lowered their payroll numbers slightly in January, and the rate of reduction was the lowest in seven months.

Input costs increased further during the month amid unfavorable exchange rates and increased raw material prices. In response to higher input costs, companies raised their selling prices in January.