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Egypt - Monthly Economic Review - March 2014
Business activity continues to underperform according to the HSBC Egypt Purchasing Managers Index (PMI). HSBC’s March 2014 poll indicates that economic activity in Egypt remains weak in the non-oil private sector. The PMI that stood at 50 in February contracted marginally to 49.8 indicating deterioration in business conditions. The rate of new order placements slowed, and there were higher job losses in March. However, the pace of job destruction slowed in March, for the first time since September 2012. While 16% of those polled indicated that economic activity had contracted, 18% reported growth. But there were bad news in that firms pointed to rising cost of raw materials because of upward inflationary pressures. However, payroll costs increase was marginal with many sectors indicating no wage changes.