Egypt’s non-oil non-public sector contracts in December as value pressures rise, PMI reveals

CAIRO (Reuters) – Working circumstances in Egypt’s non-oil non-public sector deteriorated in December, with output and new orders falling on the sharpest charges in eight months amid rising value pressures, S&P International reported on Monday.

The headline S&P International Egypt Buying Managers’ Index (PMI) dropped to 48.1 in December from 49.2 in November, its fourth consecutive month of contraction. A studying under 50 signifies a decline in exercise.

The downturn was attributed to subdued consumer demand and elevated inflationary pressures, exacerbated by a weakening Egyptian pound towards the U.S. greenback.

“The newest Egypt PMI knowledge confirmed that the non-oil non-public sector’s anticipated restoration is unlikely to be with out its setbacks in 2025,” stated David Owen, senior economist at S&P International Market Intelligence.

Companies confronted greater costs and a hunch in demand, resulting in the quickest decline in working circumstances since final April, he added.

Employment ranges fell for the second month in a row, though the discount was slight. Rising wage prices, linked to cost-of-living challenges, contributed to the decline in job numbers.

Enter value inflation accelerated, pushed by greater materials costs and an appreciating US greenback. Regardless of this, corporations have been much less inclined to boost their very own expenses, tightening margins to take care of orders.

Non-oil firms have been extra optimistic about future exercise, hoping for improved home and geopolitical circumstances in 2025. The long run output sub-index rose to 53.8 from 50.5 in November. Considerations about alternate charge volatility and worth instability, nonetheless, might mood demand within the close to time period.