Egypt Non-Oil Private Sector Activity At 21-month Low

(RTTNews) - Egypt's non-oil private sector activity deteriorated to the lowest level in twenty-one months in March, survey data from S&P Global showed on Tuesday.

The Purchasing Managers' Index, or PMI, fell to 46.5 in March from 48.1 in February. Any reading below 50 indicates contraction in the sector.

The latest decline was the worst recorded since June 2020.

Output, new orders and stocks of purchases logged the worst declines since the first wave of the COVID-19 pandemic during March.

"Wholesale and retail firms were also hit by a sharp increase in food prices, especially items where Egypt is particularly exposed to import disruption - for instance, Egypt is the largest global importer of wheat from both Russia and Ukraine," David Owen, an economist at S&P Global, said.

Input buying decreased in March and inventories declined for to the greatest extend since May 2020.

Both the selling prices and input costs increased in March.

The outlook for the activity weakened to the lowest level since the series began in April 2012.

The number of jobs were reduced for the fifth month in a row and backlogs of work fell for the second consecutive month. Delivery time lengthened in March.