Cairo – Mubasher: Egypt’s non-oil private sector slashed in March 2018 amid easing inflationary pressures, recording improved export orders for the third month in a row.
The headline seasonally adjusted Emirates NBD Egypt Purchasing Managers’ Index (PMI) fell to 49.2 in March from 49.7 in February, according to a recent survey sponsored by Emirates NBD and produced by IHS Markit.
“While we still anticipate an improvement in the Egyptian economy this year as the negative effects of its IMF-sponsored reforms pass through, the latest PMI data implies that this is taking longer than the authorities might have hoped,” MENA Economist at Emirates NBD Daniel Richards commented.
Non-oil private sector firms reported a marginal contracting output, which had improved since February, the survey showed.
Non-oil business activity had remained the same since last month, following a slight growth registered in February.
The rate of growth in new export orders was “modest” for the third consecutive month, with the upturn showing increased demand from near Middle East economies.
Input and output price pressures seen by non-oil private sector firms had softened during March, while average cost burdens rose at the slowest pace since September 2015, the survey highlighted.
“The rate of contraction accelerated since February and was moderate overall. Some firms noted that retiring members of staff were not replaced,” the survey noted.
Non-oil business has witnessed an improved supplier delivery in March, following a five-month period of vendor performance deterioration.
Companies’ sentiment towards growth prospects dropped to an eight-month low during March, despite the overall positivity of the non-oil business confidence, the survey said.
