Cairo – Mubasher: Egypt’s non-oil private sector extended its downward pace in November after deterioration in business conditions hastened in each of the past four months, said Emirates NBD Monday in its monthly report.
Emirates NBD Egypt Purchasing Managers’ Index (PMI) fell 42.0 in October, compared with 41.8 a month earlier, registering the lowest reading since July 2013.
Operations were severely affected by cost pressures resulting in currency weakness, namely against the US dollar, the report clarified.
In addition, raw materials were either unaffordable or in short, contributing to sharper falls in output and purchasing processes, the report indicated.
In an attempt to control costs, some companies have started to lay off employees or the eighteenth straight month in November.
“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. In this environment, it is crucial that authorities remain committed to their IMF-supported reform program in order to anchor investor confidence”, said Jean-Paul Pigat, Senior Economist at Emirates NBD.
