Egypt’s non-oil activity suffers over Suez Canal disruption

Egypt’s private sector activity declined in February, with the Suez Canal freight drop and foreign currency shortage exacerbating the downturn, Reuters reported on Tuesday, citing S&P survey.

The S&P Global Purchasing Managers’ Index (PMI) for Egypt fell to 47.1 in February from 48.1 in January, marking the 39th consecutive month of contraction.

New orders and domestic sales decreased due to inflationary pressures and supply-side challenges; the statement added.

The inflation in Egypt slowed to 29.8 per cent in January, and a recent investment deal with Emirati sovereign fund ADQ has eased pressure on the currency.

However, attacks on shipping in the Red Sea led to higher import costs in many countries and contributed to the largest lengthening of supplier delivery times since June 2022. As a result, companies scaled back output, with the output sub-index dropping to 44.3 in February.