Cairo - Mubasher: Business conditions in Egypt’s non-oil private sector worsened for the third straight month in December 2015, having improved on average in Q3, according to Emirates NBD Egypt Purchasing Managers’ Index (PMI).
However, the downturn moderated since November, with rates of contraction in output, new orders and employment all easing, noted the report.
There were reports that security concerns had dampened client demand, particularly from abroad as exports dropped sharply again, added the report.
Meanwhile, currency weakness relative to the US dollar remained a theme in the latest period, and it contributed to another marked rise in purchasing costs. Despite this, efforts to attract new clients meant that charges fell for the third time in four months, pointed out the report.
Commenting on the report, Tim Fox, Chief Economist at Emirates NBD, said “The recovery in the December PMI data is encouraging, and suggests that the weak November survey was at least partly due to temporary factors, impacting tourism and external demand. As such it does not alter our view that the Egyptian economy will expand 4.2% y/y in FY2015/16.”
