Egypt’s PMI reaches 46.9 signaling steep downturn in non-oil economy 

Egypt’s PMI reaches 46.9 signaling steep downturn in non-oil economy 

RIYADH: Egypt’s Purchasing Managers’ Index reached 46.9 in February, signaling a steep downturn in the country’s non-oil economy, according to credit rating agency S&P Global.

It predicts PMI to stay firmly below the 50 neutral mark.

However, February’s PMI figure is up from January’s 45.5, which indicates a somewhat softer downturn.

"The latest PMI data for Egypt continued to signal a troubled market in February, but with some relief after a rocky start to the year,” said Senior Economist at S&P Global Market Intelligence, David Owen.

The report noted that the downturn in the African country’s non-oil economy is mainly attributed to the drop in demand, as a result of high inflation and supply chain pressures.

Consequently, business confidence hit a near-record low and job numbers plunged at the fastest rate in almost nine months, it added.

“The downturns in output and new orders were not as severe in February compared to the first month of the year, as higher prices led to a solid, but softer fall in new business intakes,” Owen explained.

“Nonetheless, the sustained fall in demand led businesses to cut employment levels at the fastest rate in nine months, while input buying also decreased sharply,” he added.

Export sales also dropped for the second