Economy

Egyptian Economy Displays Damage From Inflationary Pressure – Financial Post

Published

2 years ago

April 5, 2022

(Bloomberg) — A measure of Egypt’s non-oil economy dropped to the lowest in 21 months as inflationary pressures made worse by Russia’s invasion of Ukraine as well as a weaker currency led to sharp decreases in output and new orders.

Companies reduced job numbers for the fifth month in a row and business confidence fell to a record in March as Egypt contends with the surging cost of energy, food and raw materials, according to a survey of purchasing managers by S&P Global.

In a glimpse at the conflict’s spillover effects on Egypt, its purchasing managers’ index declined to 46.5 from 48.1 in February, staying below the 50 mark that separates growth from contraction for the 16th straight month. Non-oil firms experienced the worst declines in output, new orders and stocks of purchases since the first wave of the coronavirus pandemic.

“The downturn was clearest to see in industrial sectors such as manufacturing and construction, where businesses and clients were more greatly exposed to energy and material price rises due to the war,” said David Owen, economist at S&P Global. “Wholesale & retail firms were also hit by a sharp increase in food prices.”

Egypt is a major food importer that buys most of its wheat from the two countries currently at war. Already one of the Middle East’s most indebted nations, Egypt has been hit hard by record grain prices and suffered a further disruption from the conflict because Russian visitors previously made up a significant portion of its tourism market.

The most populous Arab nation has requested discussions with the International Monetary Fund on new support that may include a loan. The central bank last month allowed the pound — which had been stable against the dollar for about two years — to weaken by more than 15%, and raised interest rates for the first time since 2017.

While the devaluation of the pound “may provide some short term support for the economy, it will also likely accelerate cost pressures,” Owen said. “Some firms have already seen a rise in import prices which could constrain output and force a greater increase in selling charges.”

Bloomberg.com

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

11 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

18 hours ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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