A survey whose results were published today, Thursday, showed that the activity of the non-oil private sector in Egypt shrank for the fifteenth consecutive month in February, and production and new orders declined, with sentiment falling to the lowest level in nearly ten years.
وارتفع PMI Which was issued by IHS Markit to 48.1 from 47.9 in January, to remain below the 50 level separating growth and contraction.
IHS Markit said production and new orders in February continued the continuous contraction since November 2020. It added that there was evidence to suggest that recent price hikes had contributed to lower demand.
The production sub-index rose to 48.1 from 47.9 in January, while the new orders sub-index rose to 47.3 from 46.9.
“Of the four major sectors covered by the survey, the sharpest decline was in production and new business in the construction sector,” IHS Markit said.
The export orders index fell last month to 48.3 from 51.2 in January, while the purchasing quantity index rose to 48.1 from 47.1.
IHS Markit added that concerns regarding COVID-19 cases, vaccination rates and inflation contributed to a sharp decline in business confidence.
The sub-index for future production expectations fell in February to 55.4 from 65.2 in January, its lowest level since it was included in the survey in April 2012.
“Only 11% of businesses expect growth in the next 12 months,” IHS Markit said.
“However, there may be weak price pressures on the horizon as the latest data indicated a marked decline in input cost inflation since the beginning of the year. Production costs rose following that to the lowest level since last July.”