Egypt’s PMI edges closer to 50.0 growth threshold in November
This increase brings the index closer to the neutral 50.0 threshold, which the PMI had surpassed for the first time since November 2020, recording 50.4 points in August.
The report indicates a decline in operating conditions across Egypt's non-oil sector.
Furthermore, the report asserts that output decreased due to weaker order inflows, marking the most minor decrease in three months.
Additionally, the report highlights that input prices rose at the slowest pace since July despite some upward pressure on material costs due to a stronger US dollar.
Similarly, output charges increased, but at a more moderate rate.
Non-oil private sector activity contracted for the third consecutive month due to weak customer demand.
New order volumes also declined, continuing the trend that began in July.
Sector data revealed modest growth in the manufacturing industry, with a slight rise in goods orders contributing to increased output.
This helped offset declines in construction, wholesale and retail, and services.
Decline in employment
The number of employed workers decreased in November for the first time after four months of expansion.
According to the report, the employment decline was the fastest since February.
The reduction in staffing levels was primarily due to companies not replacing voluntary departures in response to lower sales volumes. This led firms to have lower confidence in future business activity.
Decline in inflation
Non-oil businesses also saw a sink of input cost inflation during November, with price pressures easing to a four-month low.
This was mainly attributed to slower wage growth, as staff pay increased at the slowest rate in 16 months.
However, purchase prices continued to rise sharply, partly due to the strengthening of the US dollar.
The easing of cost pressures contributed to a slowdown in output price inflation. Selling prices rose modestly, marking the smallest increase in four months. Meanwhile, average output prices in the construction sector saw a slight decline, contrasting with higher charges in other sectors.