The Clap
The S&P Global Egypt Purchasing Managers’ Index (PMI) recorded 47.2 points in December, up from 45.5 the month before.
What
The indicator, which indicates economic expansion if over 50 and contraction if under 50, recovered slightly during December. However, the indicator remained under the 50-point level for the 25th consecutive month.
The economy was impacted by the below-par performance from the non-oil production sector, despite it being slightly better than in November.
So What
The EGP’s devaluation impacted production costs significantly, adding pressure on companies’ financials. In December, businesses cut staff and depleted inventories due to increased costs.
Now What
As a result of higher input costs, businesses hiked prices, passing on some of the burdens of increased costs to consumers.
