Egypt PMI rebounds in December to three-month high

Egypt’s Purchasing Managers’ Index (PMI) rose to 48.2 in December, the highest reading in three months,  against the November reading of 45, indicating a slower rate of contraction in economic activity.

The average PMI for the fourth quarter of last year, however, was below the neutral 50-level due to weak demand and slow external demand, the Emirates NBD’s Purchasing Managers’ Index (PMI) showed.

Activity in the tourism sector in particular—reflected in the new export orders— was relatively weak at 43.5 in December, although it has improved from the November reading of 39.4.

Survey respondents highlighted ‘security concerns’ as a factor for the decline in new business from abroad in December.

New orders and output rose to three-month highs in December at 48.8 and 48.2, respectively, leading to a slight rise in the employment index at 46.5.

 “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 percent year-on-year in financial year 2015-16,” the report said.