Egypt’s PMI hits 3M high in August – Report

Cairo – Mubasher: Egypt’s non-oil private sector has witnessed further improvement in operating business conditions during August.

The seasonally adjusted Emirates NBD Egypt Purchasing Managers’ Index (PMI) rose to 50.5 in August, from 50.3 in July, according to a recent survey sponsored by Emirates NBD and produced by IHS Markit.                                            

“Egypt’s headline PMI reading of 50.5 in August was the first time since September 2015 that two consecutive months have returned positive readings, suggesting that the Egyptian non-oil private sector is beginning to see the protracted recovery we had projected would take hold in the new fiscal year,” MENA Economist at Emirates NBD Daniel Richards commented.

The PMI reading was mainly driven by the two-month hike in new orders during August, in line with higher demand from both domestic and international markets which bolstered the latest rise in new business.

Non-oil private companies reported marginal expansion last month that eased from July, however, gains from new orders accelerated, the survey highlighted.

Moreover, output was stable during August, ending contraction that lasted for three consecutive months, the survey indicated.

Companies raised staffing levels last month due to increased work inflows, ending “a 38-month sequence of job shedding”, the survey added.

It is worth noting that August marked the highest employment growth rate since the inception of the survey in April 2011.

Overall input cost inflation remained sharp in August on the back of surges in both salaries and purchases costs, the survey said.

On the other hand, output charges rose sharply in August at a slower pace that in the month before.

“Firms retained optimism towards the 12-month outlook for output amid hopes of stability,” the survey noted.

Mubasher Contribution Time: 04-Sep-2018 07:36 (GMT)
Mubasher Last Update Time: 04-Sep-2018 07:36 (GMT)