Egypt's non-oil business conditions improve as inflation eases

Price pressures eased across non-oil businesses and business activities were more stable in Egypt in December 2021, according to a latest business survey.

The seasonally adjusted IHS Markit Purchasing Managers' Index (PMI) rose to its highest level in four months in December. At 49.0, up from 48.7 in November, the index moved closer to the 50.0 neutral threshold and was above its long-run series average of 48.2 (since April 2011).

"The latest Egypt PMI gave increased confidence that inflationary pressures peaked earlier in the fourth quarter and are now beginning to soften. Input prices rose at the slowest rate since September, while the month-on-month drop in inflation was the quickest recorded for more than three years," David Owen, Economist at IHS Markit, said.

While input cost inflation was weakest in over three years due to reduced purchasing prices and weak increases in wages, new orders were stymied due to weak demand and rising prices, the IHS Markit survey noted.