Employment rises in Egypt non-oil business in September for 3rd consecutive month: PMI report

Rana Salem , Thursday 3 Oct 2024

The Purchasing Managers’ Index (PMI) report from S&P Global on Egypt has revealed that the country's employment rate has steadily increased in September for the third consecutive month, signalling a positive trend in its non-oil private sector.

Factory
File Photo: Factory in Egypt. Al-Ahram

 

The PMI, a key indicator of business health, provides insights into the overall economic landscape.

The report highlighted significant job growth, particularly in the construction and retail sectors.

PMI declines
 

However, the report showed a decline in Egypt's PMI index for the non-oil business sector to 48.8 in September, slipping below the neutral mark of 50.

This decline followed a peak of 50.4 in August, the highest level since November 2020.

The drop reflects tougher business conditions, driven by decreased consumer demand and a notable decline in new orders, the fastest drop seen in five months.

 


Source: PMI report

 

Impact of rising prices
 

Domestic demand has also been affected, with rising prices linked to increased costs of raw materials and a weakened currency.

As a result, many companies have been compelled to raise their selling prices, further impacting consumer spending.

Encouraging trends
 

Despite these challenges, the report noted some positive developments. Companies continue to increase their purchasing and hiring, suggesting a potential recovery for the non-oil sector in the upcoming months.

“There were some positives from the latest data, however, namely that firms continued to increase their buying levels and staffing,” David Owen, a senior economist at S&P Global Market Intelligence, stated. 

Although the latest PMI report paints a mixed picture of Egypt's economy, the ongoing rise in employment offers a glimmer of hope.

 

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