Egypt Non-Oil Private Sector PMI Lowest Since July 2013

(RTTNews) - Egypt's non-oil private sector activity deteriorated at the steepest pace in nearly three-and-a-half years in November, survey figures from Emirates NBD and IHS Markit showed Monday.

The seasonally adjusted Emirates NBD Egypt Purchasing Managers' Index, or PMI, dropped to 41.8 in November from 42.0 in October. Any reading below 50 suggests contraction in the sector.

Substantial cost pressures stemming from currency weakness, particularly against the US dollar, were reported to have had a severe impact on operations.

Among components, both output and new orders fell markedly in November. Total input costs rose at a survey-record pace, driven by sharper increases in both salaries and purchase costs. As a result, rate of charge inflation also reached a series high.

"The ongoing downtrend evident in November's survey highlights that there will be no quick fixes to Egypt's economic difficulties, even following the EGP devaluation earlier in the month," Jean-Paul Pigat, Senior Economist at Emirates NBD, said.

"In this environment, it is crucial that authorities remain committed to their IMF-supported reform program in order to anchor investor confidence."