Egypt’s non-oil private sector activity contracted in May for the sixth month in a row, but at its lowest pace in three months, according to IHS Markit’s new survey
The seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index advanced to 48.6 in May from 47.7 in April. A reading above 50 indicates expansion, while a reading below that signals contraction.
Business conditions deteriorated across the non-oil sector, pressured by declines in output and new business.
New order inflows fell for the sixth consecutive month, but to the least extent since February as customer demand declined by the COVID-19 pandemic, while export orders surged.
“The output and new orders indices were both up to three-month highs, while the stocks of purchases index suggested that firms were close to expanding their inventories after reductions in the first four months of 2021,” said David Owen, an economist at IHS Markit.
“Business expectations data offered a glimpse of a positive future, as firms were at their most optimistic since early 2018 and expectant of a strong recovery in business conditions to follow soon,” Owen noted.
