CAIRO, Nov 3 (Reuters) – Egypt’s non-oil private sector slumped to a 23rd straight month of decline in October, a survey showed on Thursday.
S&P Global Egypt’s Purchasing Managers’ Index (PMI) stood at 47.7, the highest since February and up slightly from September’s 47.6, but still below the 50.0 threshold that separates growth from contraction.
Business optimism among non-oil firms has fallen to its lowest level in more than a decade, with just 4% of companies giving a positive outlook for the next 12 months.
Non-oil firms cut the number of workers for the first time since June, with some saying the decline in sales led to layoffs.
S&P Global Economist David Owen said: “Egypt is being hit hard by the war in Ukraine, particularly in the tourism sector, as well as industries that have been banned by the government since March.
The reading came as the Egyptian pound depreciated sharply against the dollar after the central bank signaled its commitment to a floating exchange rate linked to new financing from the International Monetary Fund.
The central bank has said that the income financing regulation, which restricts access to the dollar, will be phased out by December.
Reported by Aidan Lewis; Editing by Hugh Lawson
Our Standards: The Thomson Reuters Trust Principles.
