Egypt’s non-oil private sector remains in contraction in March: HSBC

Business conditions in Egypt’s non-oil private sector extended a negative performance for a third consecutive month at March-end hurt by slashing output and employment, while new orders barely grow in the same period, HSBC announced in a survey released Sunday.

As the Egyptian pound continued to depreciate against the US dollar, overall input costs saw a sharp rise in March, said HSBC.

The HSBC Egypt Purchasing Managers Index (PMI) hit 49.6 points in March, up from a 17-month low of 46.8 at February-end, but remains below neutral 50.0 thresholds, continuing the trend observed since the beginning of quarter one of 2015.

In December, the index recorded 51.4 points. Readings above 50.0 reflect an improvement in business conditions, while a breach below this level marks a deteriorating business.