Supply logjam and soaring commodity prices still fueling the contraction forces
Egypt’s PMI index was caught again between the rock and a hard place as imported inflation pressures constrained the firms’ ability to secure their adequate margins without depressing the fragile demand recovery. Egypt’s PMI remained at 48.7 (the same reading in October vs. 48.9 in September), having been in the contraction territory for a year. The survey also raised concerns about the trajectory of labor market recovery as the employment index, which had been in expansion for the last four months, reversed its expansion trend and fell into contraction territory, falling from 50.5 in October to 48.5 in November. Moreover, the downturn in output and new order volumes continued in November, with the latter showing the fastest rate of decline since May 2021. On the positive side, foreign demand picked up for the first time in three months, which alleviated the pressures on the headline PMI index.
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Mona Bedeir
Chief Economist
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