Cairo – Mubasher: Egypt’s business conditions worsened during June for the ninth month in a row, although non-oil private sector’s decline slightly dwindled, according to a monthly survey by Emirates NBD.
The Emirates NBD Egypt Purchasing Managers Index (PMI) stood at 47.5 points in June, compared with May’s 47.6 points.
Along with ongoing declines in output, new orders as well as employment, the report indicated that the recent Egyptair incident has depressed the tourism sector, thus contributing to another marked reduction in new business from abroad.
Moreover, higher prices were deemed as a factor restricting demand on the one hand. On the other, Input costs rose at a survey-record pace and the rate of charge inflation was sharpening as well at the same time. Both were linked to the weakness of the Egyptian pound against the US dollar.
“June’s survey suggests the Egyptian economy continued to slow at the end of FY2015/16, with the tourism sector appearing particularly weak. As we start the new fiscal year in July, hopes for a stronger recovery will depend in large part on whether a solution to the ongoing FX liquidity crunch can be found in the near term”, said Jean-Paul Pigat, Senior Economist at Emirates NBD, commenting on the Emirates NBD Egypt PMI.
