CAIRO: Egypt’s non-oil private sector dipped in January for the first time since July due to a slight drop in output and new orders, an HSBC survey released Tuesday announced.
The HSBC Egypt Purchasing Managers Index (PMI) slipped to 49.3 pints in January, compared to 51.4 in December. Readings above 50.0 reflect an improvement in business conditions, while a breach below this level marks a deteriorating business.
Surveyed companies cited the slide in output to lower demand, according to the HSBC.
“The numbers show that Egypt’s recovery remains weak and vulnerable to downside risk. While we continue to except an upward trajectory for the economy, the gains will come off a low base,” Razan Nasser, Senior Economist at HSBC, said, commenting on the Egypt PMI survey.
As output and new orders decreased, Egypt’s non-oil private sector companies had to cut their workforces for the second month in a row in January. However, “the rate of job shedding was unchanged from December’s marginal pace,” according to the survey.