Egypt Non-Oil Private Sector Expands In January

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(RTTNews) - Egypt's non-oil private sector logged a renewed expansion at the start of the year as output and sales volumes increased amid cooling inflationary pressures, survey results from S&P Global showed on Tuesday.

The Purchasing Managers' Index rose to a 50-month high of 50.7 in January from 48.1 in December. A reading above 50 indicates expansion in the sector.

The latest upturn in January was a boon for the non-oil private sector, which has struggled in recent times amid rampant inflation and the wider effects of regional instability.

Among components, both business activity and new orders grew at the quickest pace in over four years. Employment stabilized across the non-oil economy, while an increase was seen in purchases of inputs.

On the price front, input price inflation eased markedly to an eight-month low due to a slower rise in purchase prices. As a result, the increase in selling prices was the least pronounced in four-and-a-half years.

"The ceasefire deal between Israel and Hamas likely added confidence to markets in January," David Owen, Senior Economist at S&P Global Market Intelligence, said.

"That said, business expectations for the next 12 months remain subdued, showing that firms are still uncertain about economic stability over the longer term."