Cairo – Mubasher: Egypt’s headline seasonally adjusted Emirates NBD Egypt Purchasing Managers’ Index (PMI) reached a nine-month high of 47.4 in April, compared to 45.9 in March, according to a recent survey, sponsored by Emirates NBD and produced by IHS Markit.
Non-oil private sector companies in Egypt signalled a decline in overall business conditions for the 19th consecutive month in April.
In response to fewer output requirements, firms reduced their payroll numbers and purchasing activity.
The report attributed the increases in input costs and output charges to the currency weakness and a general increase in market prices.
“The slower pace of deterioration in the headline Egypt PMI is an encouraging start to the second quarter as it follows on from a gradually improving trend already seen through the first quarter. It reinforces the perception that after bottoming in Q4-16, the economic situation in Egypt is beginning to stabilise,” Tim Fox, head of research and chief economist at Emirates NBD, said.
“As well as being the strongest overall reading in nine months, particular comfort can be taken from the fact that the new export orders index grew for the first time in nearly two years which is likely to reflect the positive impact of a weaker exchange rate,” Fox added.
