Egypt's non-oil privater sector activity contracted for the first time in eight months at the beginning of the year, as both output and new orders fell, the results of a survey by Markit Economics and HSBC showed Tuesday.
The purchasing managers' index, or PMI, for the non-oil private sector dropped to 49.3 in January from 51.4 in the previous month.
A reading below 50 indicates contraction, while a value above 50 suggests expansion in the sector. It was the first decline in overall operating conditions since July last year.
Non-oil private sector output fell for the first time in six months in January. Companies largely attributed the drop in output to lower demand.
New orders received by firms decreased at a marginal pace in January due to slow market conditions and adverse weather conditions. Similarly, new export orders fell for the second time in past three months.
Companies reduced their employment levels for the second month running in January and the rate of job shedding remained unchanged from December's marginal pace.
On the price front, input prices continued to increase in January, but the rate of inflation little changed from December and remained below the surrey's average.
Despite rising input costs, companies reduced selling prices for the third consecutive month in January.
(RTT)
