On the positive side, export orders rose sharply, noted the report
Photo by Adeolu Eletu on Unsplash
Business conditions in Egypt continues to see a softer decline in the non-oil private sector, led by further decreases in output and new business, according to the latest IHS Markit Purchasing Managers’ Index.
The index noted a sixth consecutive monthly decline in the non-oil sector, however the rate of contraction was at its softest in the last 3 months, with weak demand balanced out by improving conditions in the economy.
The HIS Markit index saw Egypt climb to 48.6 in May from 47.7 in April.
Reading above 50 indicates expansion, while a reading below that signals contraction.
“The Egypt PMI remained in contraction territory during May but did improve slightly from April, signaling a slight step towards stability in the non-oil economy,” said David Owen, Economist at IHS Markit.
New orders decreased for the sixth month in a row due to weakened consumer demand in response to the pandemic.
On the positive side, export orders rose sharply, noted the report.
“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 added.
Employment continues to lean down in May, with weaker demand for staff and a slight decrease in outstanding workloads. However, the rate of job losses eased at the start of Q2, said the report.
“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,” stated Owen.
