Cairo – Mubasher: Egypt’s non-oil private sector saw the steepest decline in more than two years induced by sharper falls in output, new orders and employment, a survey by Emirates NBD indicated.
The survey cited “currency weakness against US dollar” as a major factor descopped business activities and led to a sheer rise in purchasing costs,
In March, Egypt’s PMI fell for the sixth straight month to 44.5 points, which is the lowest level in 31 months, compared to 50.7 points at the beginning of 2016.
The same index stayed at 46.9 in the first quarter of 2016, compared to 46.8 points for the fourth quarter of 2015.
The survey generally ascribed “lower output” in the scope of business activities to lack of new work and liquidity shortages result in currency depreciation against dollar, which even led new business to the same trend of lower output.
The report attributed lowering total new orders to falling new export business. Moreover, international clients are acting cautiously as a result of Egypt’s uncertain economic conditions, namely the indicators reflected by the exchange rate.
Finally, the report considered employment conditions one of the main reason behind this decline, clarifying “Egypt’s non-oil private sector firms reported further job losses in February. Employment decreased for the ninth successive month, with panellists indicating that workers had left their posts in order to search for better job opportunities”.
