Egypt Non-Oil Private Sector Contracts Further In May

(RTTNews) - Egypt's non-oil private sector continued to contract in May, though slightly, survey figures from Markit Economics and HSBC showed Wednesday.

The Purchasing Managers' Index, or PMI, for the non-oil private sector rose marginally to 49.9 in May from 49.8 in April. However, a reading below 50 indicates contraction in the sector. It was the fifth successive decline in overall business conditions.

New orders showed no variations in May, after rising in the previous two months. As a result, output grew only marginally during the month.

Meanwhile, new export orders declined sharply in May, due to a lack of stability in key foreign market across the Middle East.

Despite the stagnation in new business, employment rose for the first time in six months during May, but the rate of job creation was slight overall.

On the price front, input price inflation intensified in May, driven by higher purchase prices and employee wages. In contrast, companies reduced their selling prices in May, often in an effort to secure new clients. Moreover, the latest fall in charges was the fastest since February 2012,