Cairo – Mubasher: Egypt’s non-oil private sector slashed in May, in line with a slight decline in output and new orders.
The headline seasonally adjusted Emirates NBD Egypt Purchasing Managers’ Index (PMI) fell to 49.2 in May from 50.1 in April, according to a recent survey sponsored by Emirates NBD and produced by IHS Markit.
“The index continues to hover around the 50.0 mark, a vast improvement on the trends observed prior to the November 2016 reforms, and while the forward-looking data is not quite as positive as it has been in recent months, it continues to point towards an ongoing improvement in the Egyptian economy,” MENA Economist at Emirates NBD Daniel Richards commented.
Egyptian non-oil private sector firms reported a drop in new orders and a decline in business activity during May, with panel members citing weaker demand, the survey showed.
Both output and new business fell marginally last month at a slower pace than their respective averages.
Job shedding eased for the third month in a row and staffing levels shed last May, the survey indicated.
Moreover, purchasing activity by non-oil private sector businesses accelerated to an eight-month high during May.
Output charges rose during May due to cost pressures and the US dollar rate, while price front carried on the increase in their average selling prices through the second quarter of 2018.
Meanwhile, input prices rose and the rate of overall input price inflation softened from April to a three-year low, according to the survey.
Non-oil private sector firms expect that output would grow over the coming 12 months.
Companies’ sentiment towards growth prospects eased during May, despite the planned business expansions amid expectations of stronger demand.
