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Non-oil sector stabilizes in June

Tuesday 03 July 2018 12:13 PM

Egypt non-oil sector
Egypt non-oil sector

The Egyptian non-oil private sector moved closer to stabilisation during June as new orders and employment both contracted at softer rates, offsetting the accelerated reduction in output, said Emirates NBD in its latest PMI survey.
In fact, staffing levels fell at the slowest rate since June 2015. Inflationary pressures meanwhile continued to build as overall input costs rose further. As a result, output prices increased at an accelerated pace.
The survey, sponsored by Emirates NBD and produced by IHS Markit, contains original data collected from a monthly survey of business conditions in the Egyptian private sector.
Commenting on the Egypt PMI survey, Daniel Richards, Mena Economist at Emirates NBD, said: “The June contraction shown by the PMI was marginally slighter than that in May, but the failure to consistently post above the 50.0 mark reflects the fact that Egypt’s economic recovery has to now been achieved primarily through external rebalancing and government investment, and that the private sector continues to lag.
“That is not to say that there has been no improvement, however; the average PMI reading of 49.6 recorded in both Q1 and Q2 make them the strongest quarters in years, and business optimism remains fairly upbeat.”