Non-oil Sector
HIS Markit said in a report that business sentiment around future activity soared to the highest in one-and-a-half years in August, as more Egyptian firms expressed optimism for growth.
This improvement came as a result of the slight growth of output and new orders, while employment continued to fall.
"Egypt’s non-oil private sector remained under pressure in June, although the pace of decline slowed from May," MENA Economist at Emirates NBD Daniel Richards commented.
It said that the private sector has continued to bear the brunt of ongoing reform economic efforts in Egypt, and will likely remain under pressure in the summer.
“The index has remained stubbornly in sub-50.0, and while we continue to expect an improvement in conditions over 2019, Egyptian firms clearly remain under pressure.”
PMI for the non-oil private sector fell to 48.5 in January, compared to 49.6 in December, recording the lowest level since December 2017.
Emirates NBD research clarified that Egypt is closing the year on a positive note.
Emirates NBD research clarified that despite reaching the highest rate in three months, “it is still in contraction territory.”
Egypt’s Emirates NBD Purchasing Managers’ Index (PMI) for the non-oil private sector has recorded the lowest level since June.
The neutral level of Emirates NBD Purchasing Managers’ Index (PMI) is 50 which delineates contraction and expansion in the non-oil private sector.
The survey, sponsored by Emirates NBD and produced by IHS Markit, contains data collected from a monthly survey of business conditions in the Egyptian private sector.
Emirates NBD research still anticipates an improvement in the Egyptian economy this year as the negative effects of its IMF-sponsored reforms pass through.
