Egypt non-oil contraction deepens in January

Egyptian non-oil activity in the private sector shrank for a 14th month in January as output levels fell at the strongest pace in over a year and a half and new business volumes declined, a survey showed on Thursday.

IHS Markit's Purchasing Managers' Index (PMI) slid to 47.9 from December's 49.0, staying below the 50.0 threshold that separates growth from contraction. It was the lowest reading since April 2021.

"January PMI data signalled a solid and faster deterioration in business conditions across Egypt's non-oil economy," IHS Markit said.

"Some firms found that high prices for goods and services constrained sales, while others commented on supply issues linked to the pandemic," it added.

The output sub-index slumped to 45.9 from 48.2 in December, while the new orders sub-index fell to 46.9 from 48.8.

"The latest downturn was particularly strong in the construction and wholesale & retail sectors, as latest data pointed to sharp falls in output within these categories," it added.

The export orders index fell to 49.3 in January from 54.9 in December and the quantity of purchases index to 47.1 from 51.4.