CAIRO, July 5 (Reuters) – Activity in Egypt’s non-oil private sector continued to decline in June although at a slower pace as inflationary pressures eased slightly, a survey showed on Wednesday.
The S&P Global Egypt Purchasing Managers’ Index (PMI) rose to 49.1 in June from 47.8 in May, but was still below the 50.0 threshold that separates growth from contraction for a 31st consecutive month.
“Egypt’s non-oil private sector economy remained under pressure at the end of the second quarter,” S&P Global said.
“That said, both output and new orders fell at weaker rates, pushing the headline index up.”
Employment fell for a seventh straight month in June and output dropped again, though at a softer rate of 48.8, compared to 46.3 in May.
“Price pressures, liquidity issues and weak demand drove total business activity volumes lower,” S&P said.
Fewer companies reported intense price pressures seen at the start of the year, it added.
“However, despite positive directional movements in a number of sub-indices, business confidence fell to its second-lowest level on record, highlighting a sombre mood amongst businesses across Egypt’s non-oil private economy,” said Joe Hayes, principal economist at S&P Global Market Intelligence.
Annual urban consumer inflation in Egypt accelerated to 32.7% in May from 30.6% in April, according to the state statistics agency, while core inflation quickened to 40.3% from 38.6%.
Source : Reuters