Private sector continues to decline in April
Business conditions deteriorated for the fourth month in a row in April, according to an HSBC survey of Egypt’s non-oil private sector.
The country recorded 49.8 on the bank’s Purchasing Manager’s Index, edging towards the no-change point of 50 points. Scores below 50 indicate conditions have gotten worse in the past month.
The rate of deterioration has slowed fractionally since March, which had an index score of 49.6.
“Business conditions in Egypt’s non-oil private sector economy worsened for the fourth month running in April, driven by an ongoing decline in employment,” said Philip Leake, an economist at Markit, the research firm that compiles the report. “However, with output and new orders growing simultaneously again, it may not be long before the PMI breaches 50.0,” the press statement added.
Egypt last reported positive sentiment in December 2014, when the index stood at 51.4. Since then, a combination of rising costs and subdued demand have kept the score in negative territory.
Input costs and output charges continued to rise in April, although at a slower rate than in March. Panelists reported that a small uptick in new contract wins, greater market stability and export orders helped drive the month’s fractional rise. However, this has failed to translate into better employment figures, which declined for the fifth month in a row.
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