The latest readings for October fuelled some optimism that the economy may be back on a (fragile) recovery path. The manufacturing PMI climbed to a reading of 49.4 points – the highest level since the imposition of lockdowns and social distancing measures in Q2. The non-manufacturing PMI also reached a new seven-month high, although less robust at a reading of 46.8 points. The rebound remains especially fragile with the economy facing a number of challenges aside from the Covid-19 shock. Oil prices remain low – a situation which is only exacerbated by Opec+ production cuts. This, in turn, contributes to US dollar shortages. Tight FX liquidity, product shortages, flooding in certain areas, and security challenges, meanwhile, stoke price pressures.
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