Data issued by the International Market Research Institute “IHS” showed that the performance of the non-oil private sector in Egypt shrank during last December, amid the repercussions of the Corona virus pandemic on the country.
According to "IHS", the purchasing managers' index, which measures the performance of the private sector, fell to 48.2 points over the past month, compared to 50.9 points in the previous November. Egyptian non-oil-producing companies witnessed a renewed decline in operating conditions at the end of 2020, reflecting a strong decline in both production and new demands.
According to the report, the latest reading ended a three-month recovery in the economy that followed a sharp decline due to the epidemic, indicating that the increase in cases of coronavirus infection led to a decrease in customer demand. The contraction of the index also led to the accumulation of surplus production requirements for Egyptian companies, with inventories rising at the strongest rate since June 2012.
The report monitored the acceleration of the rate of job cuts to the fastest level in four months, despite the increasing hopes about Corona vaccines, which made companies more optimistic about the recovery during the current year 2021.
Source (Al-Araby Al-Jadeed Newspaper, Edited)