51166
Egypt Business Conditions Worsen
World Economy

Egypt Business Conditions Worsen

Egypt’s non-oil private sector firms reported ongoing difficulties in September, as business conditions worsened for the twelfth straight month, according to the latest Emirates National Bank of Dubai Purchase Managers’ Index.
Chief among these issues was falling output–the rate of decline accelerated and was marked. Client demand deteriorated both at home and abroad, linked to the general economic downturn and spiking inflation, TradeArabia quoted the survey report.
In fact, high prices continued to hamper the sector as a whole. Currency weakness relative to the dollar and a newly introduced value-added tax led to faster rises in both input and output prices. This contributed to a lack of new work, and also motivated a number of companies to cut back on staff. Employment fell at a similar pace to August’s survey record.
The survey, sponsored by Emirates NBD and produced by IHS Markit, contains original data collected from a monthly survey of business conditions in the Egyptian private sector.
The headline seasonally adjusted Emirates NBD PMI dropped to 46.3 in September, from 47.0 in August.
As well as marking a one-year downturn, the latest reading pointed to an accelerated contraction for the second straight month. That contrasted with the picture at the start of the third quarter, when the index had shown tentative signs of recovery by edging closer to the neutral 50.0 threshold (48.9).
Jean-Paul Pigat, senior economist at Emirates NBD, said: “The introduction of a value added tax appears to have played a role in curbing output and pushing inflation higher in September. While many of the economic reforms expected in Q4 will ultimately prove beneficial for long-term stability, in the near term they could result in a further deterioration in business conditions for the private sector.”

 

Short URL : https://goo.gl/42qLFO
  1. https://goo.gl/2aB3Uu
  • https://goo.gl/HYIeQ8
  • https://goo.gl/cDH1bj
  • https://goo.gl/QuAZH4
  • https://goo.gl/LMDcHr

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus