05 Sep 2021
IHS Markit’s PMI (Purchasing Managers’ Index) rose to 49.8 in August 2021, up from 49.1 in July 2021. The index is now almost touching the neutral score that separates contraction from expansion, and trending towards the expansion score range.
Non-oil output and new orders went up, as well as scoring above their long-run averages for four consecutive months. Also, employment levels went up for the second month in a row. Most surveyed companies remained highly positive, expecting output to grow over the coming 12 months due to stronger demand. This points towards a recovery phase from the Covid pandemic.
Inflation risks were present as well, with input and selling prices rising at a high rate. Purchasing activity rose significantly as companies moved to increase stock out of fears of further input price rises, but despite that inventories declined due to global supplier delays. Rising input prices are explained by global supply shortages and delays due to above average global orders and shipping backlogs linked to increased demand with the recovery from the pandemic.
(Source: IHS Markit (English), Reuters (English), Mubasher (English), al-Ahram (English), Egypt Today (English), Amwal al-Ghad, Hapi Journal, CNBC Arabia)