S&P gives slight bump to Egypt’s PMI for final month of 2023 to 48.5 – Egypt Today

S&P gives slight bump to Egypt’s PMI for final month of 2023 to 48.5 – Egypt Today

Cairo – January 4, 2024: Egypt’s S&P Global Purchasing Managers' Index (PMI) closed the year at 48.5, a slight uptick from November’s 48.4, citing the continued contraction to import constraints, slowed demand, and the weakened Egyptian pound.

According to S&P, the latest data displays a modest deterioration that was softer than the average seen over the past year (47.9). Egypt received its highest index rating of 49.2 in July, breaking its previous record from August 2021.

David Owen, Senior Economist at S&P Global Market Intelligence, explained that “inflationary pressures are still widely driven by the economic challenges originating from the Russia-Ukraine war, including a marked depreciation of the pound against the US dollar leading to an uplift in buying costs”.

Non-oil businesses reported higher confidence rates from the record-low in November despite activity shrinking for the 37th month - an index of below 50 is considered a contraction - to hit 55.1 from November's 50.9, the second-best recording in 2023.

S&P explained that supported by improved business projections due to an expected easing of economic challenges and a rise in activity, renewed growth in the labor market was recorded for the first time in three months.

Increased employment numbers prompted S&P to raise the PMI