Egyptian Non-Oil Companies Experience Sales Growth After Three-Year Slump
In a surprising turn of events, non-oil companies in Egypt have finally seen a glimmer of hope with a rise in sales growth for the first time in nearly three years. The Purchasing Managers’ Index increased to 49.9 in June from 49.6 in May, just below the crucial 50 mark.
Government Policies Support Economic Stability
S&P Global attributes this positive shift to government policy moves that have helped ease price pressures in the country. This development signifies signs of economic stability in Egypt, which has been grappling with various challenges in its non-oil sector.
Road to Recovery for Egyptian Businesses
Senior economist David Owen from S&P Global Market Intelligence expressed optimism about the future, stating that the non-oil economy in Egypt ended the first half of 2024 on a high note. With new order volumes rising and businesses showing signs of recovery, the road ahead looks promising.
Positive Trends in Output and Input Purchases
The report highlighted that output levels fell at the slowest rate in nearly three years, while input purchases rose for the first time since December 2021. Despite a slight increase in input cost inflation, selling charges remained modest, indicating a positive trend for businesses.
Employment Stability and Inflationary Pressures
Employment numbers remained stable in June, with some firms increasing their workforce in response to rising sales. However, inflationary pressures on businesses were largely subdued in the second quarter of the year, with market price volatility being the main factor behind rising input prices.