Egypt\u2019s purchasing managers\u2019 index (PMI) in the non-oil private sector dropped in March for the first time in three months from 49.3 in February to 48.0, signalling a modest deterioration in the health of the sector\u2019s performance, according to the IHS report released on Monday.<\/p>\n
IHS\u2019s March survey data signalled a faster decline in the Egypt’s non-oil private sector\u2019s operating conditions, as new business fell for the fourth straight month and output decreased at the sharpest rate since June.<\/p>\n
Egypt\u2019s PMI in March marked the lowest reading since June 2020 and pointed to the quickest downturn since the onset of the COVID-19 pandemic in 2019, according to the report.<\/p>\n
The report attributed the decline to faster reductions in output and new business at the end of the first quarter of 2021, adding that Egyptian businesses saw a solid fall in activity that was the most marked for nine months.<\/p>\n
Moreover, new business inflows declined at the joint-quickest rate in that same period, according to the report.<\/p>\n
\u201cNearly 12 percent of survey respondents saw a fall in new work from February, often attributing this to weak market demand and ongoing COVID-19 restrictions. Meanwhile, export sales were down for the first time in three months, albeit following a survey-record upturn,\u201d the report illustrated.<\/p>\n
The drop in sales allowed firms to work on backlogs during March, which fell for the third month in a row, according to the report.<\/p>\n
Furthermore, softer capacity pressures contributed to a reduction in workforces, extending the run of job losses to almost a year-and-a-half.<\/p>\n
The report also said that purchasing activity in the non-oil sector fell markedly, with respondents mentioning that a drop in new business inflows and previous overstocking led to weaker demand for inputs.<\/p>\n
\u201cStocks of purchased items decreased modestly, while firms experienced the worst delay to input deliveries since last June. Inflationary pressures were again recorded in the March data, led by a solid increase in purchasing costs, as a number of raw materials were marked up in price,\u201d according to the report.<\/p>\n
The report expected a strong economic recovery for Egypt by the end of 2021 owing to the accelerated national vaccine rollout.<\/p>\n","protected":false},"excerpt":{"rendered":"
Egypt\u2019s purchasing managers\u2019 index (PMI) in the non-oil private sector dropped in March for the first time in three months from 49.3 in February to 48.0, signalling a modest deterioration in the health of the sector\u2019s performance, according to the IHS report released on Monday.<\/p>\n","protected":false},"author":4,"featured_media":321781,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33,21],"tags":[326],"class_list":["post-321780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-main","category-news","tag-purchasing-managers-index"],"yoast_head":"\n